Gaming Trust problem sorted

A potential major problem in relation to New Zealand’s 641 Gaming Trusts has been resolved following representations by United Future Revenue spokesman Gordon Copeland to Finance Minister Dr Michael Cullen.

“Currently Gaming Trusts have tax exempt status on the basis that they are charitable in nature but in fact a fair proportion of the $320 million a year which is distributed to thousands of community groups goes to sporting clubs which, although tax exempt, are not charitable.

“The matter had come to a head in the context of the Charities Bill presently before Parliament. Once the bill is enacted charitable and therefore tax-free status will only be available to organisations who apply their funds 100% for charitable purposes. “This would have left the Gaming Trusts in a kind of limbo in relation to their tax-free status thus potentially jeopardising grants in favour of sporting clubs.

“I am pleased that, following our discussions, Dr Cullen has agreed to put the matter beyond doubt by way of amendment to the Income Tax Act confirming the tax-free status of Gaming Trusts,” said Mr Copeland.

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