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Charities Review: Update

No-one seems to have commented on the Minister of Finance's statement to the Finance & Expenditure Select Committee on charities. This statement was made was in the course of the Committee's Financial Review of the Inland Revenue Department on 6 December 2000. I know that there is a lot of interest in this area as I had a large response to an earlier e-mail in which I referred to the review.

Cullen said that a discussion document on the review of charities is due in the New Year, in approximately Feb/March. The Minister said that they are currently having preliminary discussions with the tax community and people in the charities area. He said that they are looking at all areas, including income tax and GST implications.

Cullen said that the definition of a "charity' is "the most important issue" and that he would like to update the definition of "charity". He said that he would like to clarify the issues of what is a charitable organisation. He also said that there is no doubt that the vast bulk of organisations that qualify as charities at the present time would continue to qualify. He said that the problem is "around the fringes". Cullen said that if the definition of charity is clarified, then they would be able to be a good deal more generous in terms of the charitable donations provisions.

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Annabel Young MP National Party Spokesperson on Revenue National Party List MP responsible for Wellington Central and Rongotai Do you want to be added to my tax email group? Have a look at my tax web-site http://www.tax.org.nz


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