Income Tax Act 2007

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CW 41 Charities: non-business income
  • Exempt income

    (1) The following are exempt income:

    • (a) an amount of income derived by a trustee in trust for charitable purposes:

    • (b) an amount of income derived by a society or institution established and maintained exclusively for charitable purposes and not carried on for the private pecuniary profit of any individual.

    Exclusion: trustees, society, or institution not registered

    (2) This section does not apply to an amount of income if, at the time that the amount of income is derived, the trustee or trustees of the trust, the society, or the institution is not, or are not, a tax charity.

    Exclusion: business income

    (3) This section does not apply to an amount of income derived from a business carried on by, or for, or for the benefit of a trust, society, or institution of a kind referred to in subsection (1).

    Exclusion: council-controlled organisation income

    (4) This section does not apply to an amount of income derived by—

    • (a) a council-controlled organisation, other than a council-controlled organisation operating a hospital as a charitable activity:

    • (b) a local authority from a council-controlled organisation, other than from a council-controlled organisation operating a hospital as a charitable activity on behalf of the local authority.

    Definition

    (5) In this section and sections CW 42 and CW 43, tax charity means,—

    • (a) a trustee or trustees of a trust, a society, or an institution, registered as a charitable entity under the Charities Act 2005:

    • (b) a trustee or trustee of a trust, a society, or an institution (the entity), that––

      • (i) has started, before 1 July 2008, to take reasonable steps in the process of preparing an application for registering the entity as a charitable entity under the Charities Act 2005; and

      • (ii) intends to complete the process of preparing an application described in subparagraph (i); and

      • (iii) has not been notified by the Commissioner that the entity is not a tax charity:

    • (c) a trustee or trustee of a trust, a society, or an institution, that is or are non-resident and carrying out its or their charitable purposes outside New Zealand, and which is approved as a tax charity by the Commissioner in circumstances where registration as a charitable entity under the Charities Act 2005 is unavailable.

    Defined in this Act: amount, business, charitable purpose, council-controlled organisation, exempt income, income, local authority, tax charity, trustee

    Compare: 2004 No 35 s CW 34

    Section CW 41(2): amended, on 1 July 2008, by section 20(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

    Section CW 41(4): substituted, on 1 April 2008, by section 331 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

    Section CW 41(5) heading: added, on 1 July 2008, by section 20(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

    Section CW 41(5): added, on 1 July 2008, by section 20(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

    Section CW 41 list of defined terms registered as a charitable entity: repealed, on 1 July 2008, by section 20(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

    Section CW 41 list of defined terms tax charity: inserted, on 1 July 2008, by section 20(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).