On 11th February this year the submissions to the Inland Revenue closed on their Exposure Draft PUB00190. We have submitted on 5 topics. In summary these are:
- The Tax Act should be changed to allow a tax credit up to a person’s tax paid income regardless of whether the income was derived in the person's name or under a Portfolio Investment Entity (PIE). At present it is limited to the person "taxable income" which excludes income that is taxed in a PIE.
- The Exposure Draft should make it clear that Donee Organisations need not be registered charities, in accordance with the legislation.
- Donee Organisations should be required to expressly state that the donation receipt qualifies as a qualifying donation for income tax purposes, saving donors confusion on whether it is or isn't.
- A specific class of assets should be permitted to meet the definition of a qualifying donation where an independent valuation is held. This is because at present qualifying donations must in monetary form (e.g. cash, bank transfer or cheque). This would cover assets such as artwork, real estate and historical items.
- Forgiveness of debt where the original debt arose from a loan of money should meet the qualifying definition of a donation, legislation change may be necessary as the Inland Revenue consider that a forgiveness of a loan is not a gift in monetary form.
Posted: Friday 12 February 2016