Income derived by charities for charitable purposes is generally exempt from income tax. While the exemption has been in place for many years, and its application can seem straightforward, deciding on matters such as what is business income and what is non-business income derived by a charity can be difficult. This needs to be considered also in terms of donations received.

The Inland Revenue has issued several operational and practice statements relating to the GST and income tax rules as they apply to charities.

This course will look at those views and areas of focus as it relates to business and charities. We will work through what it means for charities and consider what, if any, changes may be made to mitigate any taxation outcomes or impacts.

There will be a practical focus as we look at a variety of scenarios to help better understand the implications. We will also look at the implications on deregistration.

Upon satisfactory completion of this activity, you will be able to:

• Consider the implications of a charity running a business outside of its charitable purposes.
• Understand the difference between business income and exempt non-business income for a charity.
• Identify the extent to which business income a charitable entity derives is exempt from tax.
• The impact of investing in business.
• Impact on gifts/donations when a charity operates a business.
• GST implications for charities that operate a business.

Suited to…

The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, general business advisors.

1.25 CPD hours

PRESENTER

Daniel Gibbons, Partner, Findex/Crowe
Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 16 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.