Annabel Young National Revenue Spokesperson

16 October 2001

Charities hit by new compliance rules

The Government's two decisions on tax and charities today will drive down charitable and volunteer effort, says National's Revenue spokesperson Annabel Young.

"The decision to introduce registration reporting and monitoring for all charities will impose unbearable costs on the charitable and voluntary sector. The worst affected will be small charities which cannot afford to absorb additional overheads.

"Many small charities will be driven under by Dr Cullen's extra bureaucracy.

"The second decision to set up a working party gives no indication of who will be involved. The charitable sector is very diverse. At the very least, Dr Cullen will need to have representatives from both big and small charities, religious and secular charities, and the social welfare, sports and arts sectors. He will need people with tax experience.

"Charities will be keen for representation on the working party but this will cost them time and money. They simply don't have spare money or staff to pour into Dr Cullen's think tank.

"Charities are very afraid of the additional costs the Government can impose on them. Most charities run on the smell of an oily rag and they want to put every dollar into their good works, not into Government compliance costs," said Annabel Young.

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