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Inland Revenue

Tax Policy

Prize competitions

Issue: Definition of “prize competition”



The definition of “prize competition” should be amended to read “for which direct or indirect consideration is paid to the person for conducting the prize competition”.


Changing the wording of the amendment as suggested above would slightly widen the definition of a “prize competition”. It would mean that a competition whose organiser receives funding to run that competition from a person other than a participant could meet the definition of a prize competition. This could, for example, happen if funding for the competition was received from advertisers, or sponsors. Officials see no policy reason to deny people in this situation of the benefit of the proposed change.


That the submission be accepted.