Friday 4th March 2011 |
Text too small? |
Accountants are arguing that the Government needs to widen the definition of charitable gifts in the Income Tax Act to cover goods as well as money in the wake of the Canterbury earthquakes.
Many people and organisations have made donations of goods and services in response to recent disasters, particularly the September and February earthquakes in Christchurch.
These donations are not tax deductible because IRD considers a gift to mean money and in particular not "money's worth", said Jeff Owens of Owens Tax Advisors in Wellington.
He is recommending the definition of charitable gifts under the Income Tax Act be widened.
Owens said he has support from more than 50 accounting and other organisations in New Zealand.
He is recommending that the legislation be amended to define a charitable or other public benefit gift as "a gift of $5 or more or the equivalent value donation of goods or services, provided that gift has that has a defined asset cost or book value in a registered entity or otherwise provable cost price."
It was more efficient to donate goods and services when a donor has expertise or goods in a field that are urgently required.
Companies have donated a range of goods, including water and washing machines to help those affected by the earthquakes. There have also been large donations of money.
"Many businesses want to do right by those dealing with the aftermath of the devastating earthquakes in Canterbury," said Owens. "Helping corporations and individuals to give however they can is very important right now and this amendment would encourage that practice."
NZPA
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director