Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


IRD looks at ‘donation’ payments to private schools

Inland Revenue looks at ‘donation’ payments made to a handful of private schools


Inland Revenue has issued a Revenue Alert regarding payments being made to a small number of private schools and private childcare centres. The payments are being re-characterised as donations to charitable trusts, enabling people to make false claims for donations tax credits.

This issue applies to a very small number of private schools and private early childhood care/education facilities, Inland Revenue Group Tax Counsel, Graham Tubb said today.

“This is not about donations paid to state or integrated schools,” he said.
“The large majority of people and organisations do the right thing in regard to making donations and claiming tax credits.

“But Inland Revenue is aware of cases where fees paid to private education centres or the charitable trust that owns them, are being characterised incorrectly as donations or gifts.

“A payment of five dollars or more to a charity qualifies for a donation tax credit, but it must be made voluntarily, benefit the particular charity, and provide no material benefit in return.

“The Commissioner’s view of the arrangements identified so far is that such payments are not a gift or a donation. They are a fee that parents or caregivers pay for receiving education or childcare services and the centres often rely on these fees to meet their business costs.”

Mr Tubb said the payments are incorrectly described as donations in order to allow those paying them to claim a donations tax rebate to which they may not be entitled.

Another outcome of such an arrangement is that the educational centre does not return the GST on the fees.

“It is important that both parties involved in these arrangements understand the rules and that Inland Revenue will take action in cases where they have been broken.

“If a taxpayer has claimed donations tax credit, or taken a position which is incorrect for GST then that position should be corrected. Our message is that we encourage our customers to talk to us or their tax advisor if they are unsure of the rules or make a voluntary disclosure if required. We have set up an email address -RevAlertEducationCentres@ird.govt.nz – for people to ask for donations tax credit claims to be changed so they can repay any over-claimed tax credits or for the education centres to make voluntary disclosures regarding any unpaid GST. ”

The Revenue Alert is online at http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1401.html

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>

 

Parliament Adjourns:

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

TAIC: Final Report On Grounding Of MV Rena

Factors that directly contributed to the grounding included the crew:
- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news