Tax and charities

A Government discussion document

Home | Next Contents Foreword Part I - Charities and the tax system Chapter 1 - Purpose of the review This review Other reviews Chapter 2 - Government assistance to the charitable sector through the tax system The purpose of charities Government support for greater private provision Summary of proposals Defining "charitable purpose" - two options Reporting requirements Specific tax issues Outcome of consultation process Communicating your views Part II - The relevance of the definition of "charitable purpose" Chapter 3 - Current law Charitable purposes Historical influences Case law in relation to the four categories of charitable purpose Chapter 4 - Why review the definition of "charitable purpose"? Chapter 5 - Options for changing the definition Option 1: Maintain the current definition but with safeguards Option 2: Replace the existing definition with a new, general definition assisted by detailed guidelines on how the definition should be applied, with specific approval required Alternative approach: Limit the definition to the relief of poverty, illness, distress or other suffering Blood ties, contractual arrangements and the public benefit test Part III - Reporting requirements for charities Chapter 6 - Current law and practice Accounting Tax Charitable Trusts Act Chapter 7 - Why increased reporting is necessary Cost of the subsidy Accountability Chapter 8 - Options for change Registration Approved registration Annual accounts Tax returns Other forms of regular monitoring Part IV - Specific income tax issues Chapter 9 - Charities' trading operations Proposal Advantages Disadvantages Chapter 10 - Charities with purposes outside New Zealand Proposal Advantages Disadvantages Chapter 11 - The tax treatment of donations made by individuals and companies Rebate limit for donations - individuals Other matters considered Deduction limit for donations - companies Chapter 12 - Other income tax issues Imputation Fringe benefit tax Superannuation schemes for employees of charities Part V - GST Chapter 13 - GST issues Current treatment Current practice Proposals Appendix 1 - International comparisons Home | Next

First published in June 2001 by the Policy Advice Division of the Inland Revenue Department, P O Box 2198, Wellington.

Tax and charities; A Government discussion document on taxation issues relating to charities and non-profit bodies.

ISBN 0-478-10343-3