Goldsmith’s Commitment On Charitable Tax Exemption Welcomed

Published: Sun 4 Oct 2020 05:11 PM
Responding to Paul Goldsmith’s promise that the National Party would “definitely look at” taxing charity-owned businesses, New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says:
“We’re welcoming this commitment from Paul Goldsmith and will be holding him to it if he’s made Finance Minister. The fact businesses like Sanitarium enjoy a tax exemption is incredibly unfair on their competitors. And as a general rule, the taxes can be made lower when the burden is spread across the economy.”
“As we explained in our submission to the Tax Working Group, companies owned by charities have an unfair commercial advantage, because they receive a tax exemption on all of their earnings, not just the portion distributed to the charitable cause. There is a risk that charities may reinvest any distributed earnings from the companies they own and therefore avoid their tax obligations.”
“While he’s at it, Paul Goldsmith should also investigate the special tax status of iwi-owned enterprises, which face a lower corporate tax rate and therefore are able to squeeze out competitors.”

Next in New Zealand politics

Budget 2024 In Charts: What Does It All Mean?
Budget 2024: Winners And Losers
Government “living In An Alternative Universe” With 2024 Budget
By: WWF-New Zealand
Te Pāti Māori: Declaration Of Political Independence
By: The Maori Party
Coalition Of Cowards Slashes Investment In Climate Action
By: Green Party
Back Out Budget Breaks Promises
By: New Zealand Labour Party
View as: DESKTOP | MOBILE © Scoop Media