Rules around gifting donation tax credits

Published: Tue 17 Dec 2019 05:25 PM
In response to a Court of Appeal decision today, Revenue Minister Stuart Nash says he intends to introduce legislation to clarify the law regarding donation tax credits.
“We need to act swiftly to provide certainty,” Mr Nash says.
“Today’s decision opens the way for claims to be made to Inland Revenue for donation tax credits which have never been considered to be eligible. It is important that people who make donations have certainty about when claims for tax credits are eligible.
Mr Nash says that the proposed legislative change would confirm that donation tax credits and gift deductions would not be available for gifts to donee organisations where they are made by way of debt forgiveness.
Today’s announcement follows the decision by the Court of Appeal in the case of Commissioner of Inland Revenue v Roberts. The Court found donation tax credits are available for gifts made by way of debt forgiveness.
“This is contrary to the policy. The policy intent is that donation tax credits and gift deductions are limited to gifts of cash or cash equivalents such as payments made by bank transfers, credit card or cheques. It is not intended that donation tax credits or gift deductions should be available for gifts in kind or gifts made by way of debt forgiveness.
“The proposed amendment would apply retrospectively to 1 April 2008, being the commencement date of the Income Tax Act 2007. However, a savings provision would apply to taxpayers who have already taken a position in reliance on the current legislation and have filed a return or donation tax credit claim before the date of this announcement,” Mr Nash said.

Next in New Zealand politics

Government Throws Coal On The Climate Crisis Fire
By: Green Party
Public Transport Costs To Double As National Looks At Unaffordable Roading Project Instead
By: New Zealand Labour Party
New Paper On A Framework For Assessing The Economic And Fiscal Impacts Of Climate Change
By: The Treasury
Pet Bonds A Win/Win For Renters And Landlords
By: New Zealand Government
New Zealand Condemns Iranian Strikes
By: New Zealand Government
EDS Calls For Fast-track Approvals Bill To Be Abandoned In Submission To Select Committee
By: Environmental Defence Society
View as: DESKTOP | MOBILE © Scoop Media