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Tax Changes For Charities To Be Announced In Next Budget
Jo Moir, Political Editor
The Finance Minister has promised tax changes for charities, and closing of loopholes, will be announced at next year's Budget in May.
Nicola Willis said it would not be right to rule out any new tax revenue streams or levies in this Parliamentary term, especially given the issue of charities' tax breaks are already being investigated.
"We've set that out in the tax policy work programme - what essentially we're doing is looking to see if there are any loopholes that are being exploited that would allow entities that are structured as charities to avoid tax they should otherwise pay," Willis told reporters on Tuesday following her appearance at the Finance and Expenditure Select Committee.
"The truth is I will be looking at revenue from tolls, and there could be tweaks to the charity tax regime.
"You can expect me to make announcements at the Budget."
What she did rule out was a wealth tax or a capital gains tax under the Coalition government.
Willis said she was mindful of striking the right balance when it came to charities paying tax.
"What we're weighing up here is on the one hand, in reality, New Zealand charities play a massive role in our communities and many of them fundraise, contribute significantly to their communities, and they face a lower tax burden because we all appreciate that.
"On the other hand, wherever you have omissions from the tax regime there will be some who structure their affairs to limit their liability, who might be, for example, building up funds that aren't going to charitable purposes, that are building up their own coffers.
"That's one of the issues we're looking at. There are a number of details here, what I want to work through carefully is not punishing the good while trying to go after the bad," Willis said.
Best Start and Sanitarium were examples of trading entities that are structured as charities, which could be an example of the types of businesses impacted by the changes, she said.
"Obviously Cabinet hasn't taken decisions yet and I haven't taken advice to Cabinet on what we could do here.
"I'm being transparent with you about the process we're working through," Willis said.
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