Charitable or other public benefit gift

Submission

(Matter raised by officials) 

That the definition of “charitable or other public benefit gift” be amended to restore the reference to the phrase “gift of money”. 

Comment

The policy intention is that the tax credit for a charitable or other public benefit gift requires the gift to be made in money, or be a subscription paid to a society, institution, association, organisation, trust or fund referred to in section LD 3. 

The rewrite of this definition into section LD 3 omitted the phrase “of money” on the basis the language of the provision provided sufficient direction that the gift was required to be paid in money. However, questions have been raised with officials on whether this drafting approach definitively requires the gift to be paid in money.

Officials recommend that the definition of “charitable or other public benefit gift” be amended to clarify the definition of “charitable or other public gift” is a monetary gift. This is consistent with the long standing policy and the corresponding provision of the Income Tax Act 2004.

We also recommend this amendment apply to charitable or other public benefit gifts made after the enactment of the amending legislation.

Recommendation

That the submission be accepted.