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National wrong on Charities Bill

National wrong on Charities Bill

The National Party has misunderstood both the Charities Bill and the Income Tax Act 1994.

Under current law, the promotion of sport is not included in the definition of charitable purposes. However, societies and associations that operate substantially or primarily to promote amateur sport are tax-exempt under a separate provision of the Income Tax Act.

The Charities Bill will not alter this provision.

If a gaming trust satisfies the criteria of the Income Tax Act, it will remain able to give money to sporting organisations without its tax-status being affected, even if it does not register with the Charities Commission.

The changes proposed by the Charities Bill proposes will affect neither the charitable status of sporting bodies nor their ability to secure future funding.

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