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

 

PARLIAMENT TODAY:

Midwives On Pay Equity: Historic Bill Of Rights Case For High Court

“We have been left with no choice.” That from Karen Guilliland, the Chief Executive of the New Zealand College of Midwives, as the organisation prepares to file a pay parity discrimination case on the basis of gender under the NZ Bill of Rights Act in the High Court. More>>

ALSO:

Gordon Campbell: On The Children’s Commission Report On CYF

Accusing the overworked and underfunded staff at Child, Youth and Family of a “dump and run culture of neglect” is the kind of luxury that a Children’s Commissioner can afford to indulge in from his own comfy perch in the bureaucracy. More>>

ALSO:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news