Part 2 Charitable entities

Subpart 1—Register of charitable entities

Registration requirements

13 Essential requirements

(1)

An entity qualifies for registration as a charitable entity if,—

(a)

in the case of the trustees of a trust, the trust is of a kind in relation to which an amount of income is derived by the trustees in trust for charitable purposes; and

(b)

in the case of a society or an institution, the society or institution—

(i)

is established and maintained exclusively for charitable purposes; and

(ii)

is not carried on for the private pecuniary profit of any individual; and

(c)

the entity has a name that complies with section 15; and

(d)

all of the officers of the entity are qualified to be officers of a charitable entity under section 16.

(2)

The trustees of a trust must be treated as complying with subsection (1)(a) if,—

(a)

in accordance with a ruling made under Part 5A of the Tax Administration Act 1994,—

(i)

an amount of income derived by the trustees in trust is treated as having been derived by the trustees in trust for charitable purposes for the purposes of section CW 41 of the Income Tax Act 2007; or

(ii)

income is treated as having been derived directly or indirectly from a business carried on by, or for, or for the benefit of, the trustees in trust for charitable purposes for the purposes of section CW 42 of the Income Tax Act 2007; or

(b)

the income derived by the trustees is deemed to be income derived by trustees in trust for charitable purposes under section 24B of the Maori Trust Boards Act 1955.

(3)

A society or an institution must be treated as complying with subsection (1)(b) if, in accordance with a ruling made under Part 5A of the Tax Administration Act 1994, that society or institution is treated as being a society or institution that is established and maintained exclusively for charitable purposes and not carried on for the private pecuniary profit of any individual for the purposes of section CW 41 or CW 42 of the Income Tax Act 2007.

(4)

Subsections (2) and (3) cease to apply in relation to an entity if—

(a)

the period for which the ruling applies has expired; or

(b)

the ruling has ceased to apply because of section 91G of the Tax Administration Act 1994; or

(c)

the ruling has otherwise ceased to apply to the entity.

(5)

Despite subsections (1) to (3), an entity does not qualify for registration as a charitable entity if—

(a)

the entity is a designated terrorist entity as defined in section 4(1) of the Terrorism Suppression Act 2002; or

(b)

the entity has been convicted of any offence under sections 6A to 13E of the Terrorism Suppression Act 2002.

Section 13(2)(a)(i): amended, on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 13(2)(a)(ii): amended, on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 13(3): amended, on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 13(5)(a): amended, on 20 November 2007, by section 46(2)(a) of the Terrorism Suppression Amendment Act 2007 (2007 No 102).

Section 13(5)(a): amended, on 20 November 2007, by section 46(2)(b) of the Terrorism Suppression Amendment Act 2007 (2007 No 102).

Section 13(5)(b): amended, on 20  November 2007, by section 46(3) of the Terrorism Suppression Amendment Act 2007 (2007 No 102).