Under what condition is living accommodation provided by an employer not considered taxable?

Living accommodation provided by an employer is not considered taxable when it is necessary for job duties. This condition reflects the principle that certain employee benefits are not subject to taxation if they are essential for the employee to perform their job effectively. For instance, if an employee is required to live on-site to fulfill their job responsibilities, such as a caretaker, this benefit is directly related to their role, thereby qualifying for exclusion from taxable income.

The focus on job necessity underscores the understanding that these accommodations are a part of the employee's work environment, rather than a personal benefit. This specific tax provision allows employers to ensure that employees are readily available to carry out their duties without the burden of additional tax liabilities for accommodations that are integral to their employment.