Michael Gousmett: Fixing an Anachronism - the Veterinary Services exemption from Income Tax

INTRODUCTION

In 1955 the government of the day granted an exemption from income tax to veterinary services bodies in recognition of the importance of the work being undertaken by veterinary professionals in helping New Zealand’s post-war economy to develop.  

The exemption was backdated to 1951 and, 65 years later, remains in place. 

Michael Gousmett: "Voluntary" Donations - a National irony

There is a (N)ational irony in the recent debate about state-funded “free” education and “voluntary” donations.  The irony is that it was a National government which introduced the concept of a rebate, now known as a tax credit, for donations “to approved charitable, educational, and welfare institutions.”  That was back in 1962, just over 50 years ago, and the rationale for the rebate as stated by Keith Holyoake when he was on the election campaign in 1960 was “to encourage a greater degree of community self-help and initiative.”  

When debating this concession in Parliament in 1962, Holyoake stated that the rebate on donations of up to £25 a year would be “an incentive to our people to give.” 

Michael Gousmett: Ngai Tahu’s Charitable Status as a Land-Dealing Property Developer

The Press of 3 October carried yet another story on Ngai Tahu’s continuing successes, this time focussing on its property developments at Wigram Skies, the former air force base. 

The CEO of Ngai Tahu Property Limited, Tony Sewell, in responding to people who criticise Ngai Tahu’s income tax exempt status as a charity, stated that he thinks that Maori in New Zealand are easy to criticise for being successful, and in so doing misses the point altogether.

Michael Gousmett: Waikato-Tainui’s Privileged Income Tax Status

The existing legislation should be amended to provide that profits from trading derived directly or indirectly by charitable organisations and dividends derived from any company substantially owned by such organisations are assessable for income tax at normal rates.

Taxation Review Committee, 1967

The competitive advantage a charity could gain through the ability to accumulate tax-free profits [enables] a faster accumulation of funds [which would allow it] to expand more rapidly than its competitors.  [This was] the real competitive advantage that trading activities owned by charities have over their competitors.  Trading operations owned by charities would be subject to tax in the same way as other businesses.

Tax and Charities, IRD, June 2001

Dr Michael Gousmett:Ngai Tahu Distributions and Tax

An article in the Christchurch Press of 1 August about Ngai Tahu claims that some profits from the iwi’s operations go to the tribal members in annual distributions and that the exemption from income tax benefits iwi members and not Ngai Tahu Property.  

I beg to differ, as an analysis of the annual returns filed by the Ngai Tahu Charitable Group on the Charities Register tell a different story.