09 Aug 2016
Inland Revenue is proposing to clarify how it treats tax deductions for donations to charitable organisations.
Creative New Zealand is making a submission on the proposals because they will potentially have a significant effect on arts organisations. We are inviting arts organisations to support our submission or make their own if they wish.
Unfortunately submissions are due by 5pm, this Wednesday, 24 February. Creative New Zealand only recently became aware of the IRD’s proposals which were published just prior to Christmas.
Inland Revenue’s proposed clarification would mean that:
- the entire amount of a donation would not be tax deductible if material benefits are offered to the donor in return for the donation being made
- organisations could not deduct the dollar value of benefits from the total amount and then provide the donor with a tax receipt for the residual donation
- two separate line items in a donation form – one for the benefits and one for the donation – would appear to be acceptable.
Next steps
You can view Creative New Zealand’s draft submission on the proposed changes and the full IRD consultation document on the IRD website.
If you’d like to support our submission, please email david.pannett@creativenz.govt.nz by 5pm this Wednesday, 24 February. We’ll add your endorsement.
If you would like to make your own submission, this can be directed to: PublicConsultation@ird.govt.nz
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