Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Submission Deadline For Tax On Charities Extended


The deadline for submissions on the Tax and Charities discussion document has been extended by one month, from 31 July to 31 August.

Announcing the extension today, Revenue Minister Michael Cullen said the government was acknowledging the high level of interest in the subject, and the importance of getting the framework right.

"I am also aware that the National Party has been running a scaremongering campaign around the issue. Let me make it clear from the outset: this government places a high value on the role of the charitable sector in our society.

"Charities make an invaluable contribution, and in recognition are given support through the tax system. Most of that support comes in the form of an income tax exemption for charities and a tax rebate or deduction for charitable donations.

"That support will continue. In fact we are proposing raising from $500 to $600 the maximum tax rebate for individuals. It may be possible to institute further increases later, once the regime has been tidied up and we can be confident that the assistance is well-targeted.

"There has been concern for some while that the tax exemption may be open to inappropriate use. The possibility of this abuse, and the adverse impact it might have on bona fide charities, obviously does not bother the National Party. As Revenue Minister, however, it is my duty to protect the integrity of the tax system, and that means keeping it clean.

"We have proposed changing the law to clarify once and for all that charities and other non-profit bodies are allowed to claim GST refunds on most of their activities, a decision clearly in their favour.

"Other proposals mooted in the document include possibilities for modernising the definition of a charity and increasing our knowledge how charities receiving tax assistance operate, so that both the government and the public know how their money is being spent and by whom," Dr Cullen said.

"We recognise that increasing the reporting requirements for charities will increase their compliance costs. For this reason, we are looking to introduce an income threshold below which these requirements will not apply and are asking at what level this should be set.

"National is wrong and alarmist in trying to paint this as an attack on charities. Over the years many charitable organisations have themselves suggested changing the way that tax support is provided.

"Another proposal is to put the profits of charity trading operations on the same tax footing as those of other businesses. Profits retained will be taxed at the normal corporate rate. Profits used for the charitable purpose for which the charity was set up will not be taxed.

"This is not a case of charities 'losing their special tax treatment', as some have claimed. Instead, it is a matter of recognising that the income tax exemption may give businesses run by charities an unfair advantage over their taxpaying competitors.

"I will be interested to receive the public's view on this issue, in particular what level of threshold might be appropriate for small-scale trading activities.

"A further proposal is that fringe benefit tax, which charities already pay in relation to their business, be extended to their charitable activities.

"The whole point of the discussion document is to seek the views of both charities and the public on these important issues for the purpose of developing policy. I encourage all those interested to make submissions.

"The submissions will be crucial in terms of the final decisions the government makes and I would emphasise that the proposals are just proposals at this stage, not government policy," Dr Cullen said.

Tax and charities is available at Bennett's Government Bookshops and on-line at http://www.taxpolicy.ird.govt.nz and http://www.treasury.govt.nz.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The Roe v Wade Aftermath


Now that the right of US women to abortion (formerly protected by Roe v Wade) has been abolished, the important role of medication-induced abortion will come even more to the fore. Already, research by the Guttmacher Institute reproductive rights centre shows that over half of US abortions are obtained by medication. According to the US Food and Drug Administration and the World Health Organisation, the abortion pills can be safely self-administered at home within the first ten weeks of pregnancy, rather than via a surgical procedure carried out in a bricks-and-mortar abortion clinic...
More>>



 
 


Government: Electoral Changes Will Bring Greater Transparency For Voters

Changes to electoral law announced by Justice Minister Kiri Allan today aim to support participation in parliamentary elections, and improve public trust and confidence in New Zealand’s electoral system... More>>


Parliament: Grounds Fully Reopened

Parliament’s grounds have been fully reopened today at a ceremony and community event with mana whenua, members of the public, and representatives of Parliament... More>>


Chris Hipkins: Statement On Charlotte Bellis

On 31 January I released a statement regarding Charlotte Bellis and her MIQ application. I stated that emergency allocation criteria includes a requirement to travel to New Zealand within the next 14 days... More>>



NZ Republic: Charles CHOGM Speech Green Light For Change
“Prince Charles had made it clear in his speech to the Commonwealth Heads of Government Meeting (CHOGM) in Rwanda today that even the Royal family think it’s time for change” said Lewis Holden, campaign chair of New Zealand Republic... More>>


National: Goodfellow To Retire As Party President
Peter Goodfellow today announced he will not seek re-election as President of the National Party at its Annual Conference. Mr Goodfellow will remain as a director on the board for one final term to assist in the transition... More>>

Police: Parliament Occupation Investigators Seek Public Assistance
Police investigating criminal activity on the final day of the occupation at Parliament grounds earlier this year are appealing for the public’s help to identify 15 people... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels