14 August 2008

Imputation credits should be made available to charities

Today's release of a discussion document on making imputation credits available to charities has been welcomed by members of ComVoices, an independent coalition of Tangata Whenua, community and voluntary sector organisations.

"We have long been campaigning that the current rules around imputation credits are unfair for non-profit organisations and that credits should be made available to charities," says Robyn Scott, Executive Director of Philanthropy New Zealand.

Imputation credits are credits attached to dividends for income tax that has been paid by the company in which shares are held. New Zealand shareholders who pay tax in New Zealand can use imputation credits to offset their income tax.

The current law means that charities cannot claim imputation credits for dividends because they are exempt from tax.

Tina Reid, Executive Director of the New Zealand Federation of Voluntary Welfare Organisations (NZFVWO) says the non-profit Sector looks forward to providing submissions on the discussion document seeking views on whether the law should be changed.

"We are heartened that the Government is looking seriously at this issue and the anomaly that it presents for the Sector," Tina says.

"Addressing this issue will be another step towards creating a thriving philanthropic culture in New Zealand where people are encouraged to give both time and money," says Jo Lake, National Executive Officer of Presbyterian Support New Zealand (PSNZ).

Jo also commended Revenue Minister and UnitedFuture Leader Peter Dunne for his hard work.

"Peter Dunne and his advisors have worked tirelessly to improve revenue issues for the Sector. He has single-handedly done more to assist the Sector through taxation than any other Revenue Minister before him," Jo says.

The discussion document, "Streaming and refundability of imputation credits" is available at www.taxpolicy.ird.govt.nz .

The closing date for submissions is 10 October.

ENDS

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