Tax efficient housing - avoiding the common pitfalls

For many companies, providing rental reimbursement to employees as part of their pay has been normal practice for many years without any problems. It does not require any additional cost outlay by the company. The employee receives the same amount of pay each month but pays less tax than someone else earning the same who does not get rental reimbursement. Is this too good to be true? Well, as some taxpayers have found out to their cost, it is too good to be true if the employer does not provide the rental reimbursement correctly.