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

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder.

”Stocks of dairy commodities are building across the globe due to Russia’s current ban on importing dairy products from many Western nations, and a lack of urgency from Chinese buyers, while at the same time global milk supplies are expanding,” AgriHQ dairy analyst Susan Kilsby said in a note. More>>

 

Slippage: NZ Universities Still In Top 3% Globally

This year the University of Auckland ranked 175 (down from 164 last year); the University of Otago ranked 251-275th (down from 226-250), both Victoria University of Wellington and the University of Canterbury held their ranks (at 276-300thand 301-350 respectively), while the University of Waikato dropped from 301-350 to 351-400. More>>

ALSO:

Gordon Campbell:
On The Last Rites For The TPP

The Trans Pacific Partnership trade deal is one of those litmus issues that has always had more to do with one’s place on the political spectrum than with any imminent reality... For the TPP’s friends and foes alike though, the end now seems nigh. More>>

Gordon Campbell: On The Farcical Elevation Of David Seymour

With the election won, it’s time to find jobs for the boy. David Seymour is the Act Party’s latest scrounger to be rewarded by the National Party, and not only with a seat in Parliament. More>>

ALSO:

As Key Mulls Joining ISIS Fighting: McCully Speech To UN Backs Security Council Bid

It is an honour to address you today on behalf of the Prime Minister and Government of New Zealand. Our General Election took place last week - our Prime Minister Rt Hon John Key is engaged in forming a government and that is why he is unable to be here in New York... More>>

ALSO:

Labour: Cunliffe Triggers Party Wide Leadership Contest

David Cunliffe has resigned as Labour Leader, but says he will seek re-election... If there is any contest the election will have to go through a process involving the party membership and union affiliates. More>>

ALSO:

Flyover Appeal: Progress And Certainty, Or Confusion And More Delays?

Lindsay Shelton: The Transport Agency, embarrassed by the rejection of its flyover alongside the Basin Reserve, says it’s appealing because the decision could “constrain progress.” Yet for most clear-sighted Wellingtonians a 300-metre-long concrete structure above Kent and Cambridge Terraces would in no way be seen as progress… More>>

ALSO:

Gordon Campbell: On Cunliffe’s Last Stand

Right now, embattled Labour leader David Cunliffe has three options. None of them are particularly attractive for him personally, or for the Labour Party... More>>

ALSO:

Key Seeking 'New Ideas': Look To Children’s Commissioner On Poverty - Greens

John Key should not reinvent the wheel when it comes to ideas for tackling child poverty, and instead look to the recommendations of the Children’s Commissioner’s Expert Group on Child Poverty, Green Party co-leader Metiria Turei says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news