Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Meddling Charities Beware

Wednesday, 18 October 2006

Meddling Charities Beware

Charities will need to “stick to their knitting”or seriously risk losing their tax exempt status when new legislation comes into effect on 1 January 2008, warns Ernst & Young Tax Director Jo Doolan. “Charities who meddle in affairs outside of their agreed purposes, beware.”

The new legislation requires New Zealand-based charities to be registered by the Charities Commission to enjoy tax exemptions. This will entail additional administration as well as increased scrutiny.

The current rules provide exemptions from income tax for approved charities. For an organisation to be charitable its activities or aims must be for public purposes and the benefit must be available to a large part of the community. The organisation cannot be carried on for the benefit or profit of individuals.

Charities will be liable for income tax if they operate with no written rules, constitution or trust deed or they operate under a set of rules, a constitution or a trust deed that does not meet the requirements for income tax exemption. The same applies if they use business income for charitable purposes outside of New Zealand, and from 2008 they will not be exempt from income tax if they are not registered with the Charities Commission.

Jo Doolan says this is not just a case of registering and forgetting about it. The Charities Commission has the authority to impose penalties, undertake formal investigations or deregister charities that are not fulfilling their described charitable purposes or have seriously failed to comply with the Act.

With the register opening on 1 February 2007 Ms Doolan urges charities to start preparing now. For example, officers must qualify under the Charities Act 2005 which means - among other things – officers cannot have been convicted for dishonesty in the last seven years or an un-discharged bankrupt or less than sixteen years old.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>