Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Exempt income

CW 40: Local and regional promotion bodies

You could also call this:

“Tax rules for groups promoting local areas and communities”

If you are part of a group that works to make your city or area better, you might not have to pay tax on some money you earn. This is true if your group mainly does things like:

  • Advertising your city or area to get more people to live there or visit
  • Making your city or area more beautiful
  • Creating new things for everyone to enjoy in your city or area

But remember, all the money your group gets must only be used for these kinds of good deeds or other charitable purposes. You can’t use it for anything else.

This tax-free rule doesn’t apply if you’re a special kind of organisation that’s controlled by the local council. It also doesn’t apply if you’re the local council and you get money from one of these council-controlled organisations.

There’s also a special rule for the trustees of Cornwall Park in Auckland. They don’t have to pay tax on money they earn from the park’s property.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513267.

Topics:
Money and consumer rights > Taxes
Government and voting > Local councils
Previous

CW 39: Local authorities, or

“Local councils don't pay tax on most income, with a few exceptions”

Next

CW 40B: Te Urewera Board, or

“Tax exemption for Te Urewera Board's expenses related to its official duties”

Part C Income
Exempt income

CW 40Local and regional promotion bodies

  1. An amount of income derived by an association or society is exempt income if—

  2. the association or society is established mainly to—
    1. advertise, beautify, or develop a city or other district so as to attract population, tourists, trade, or visitors:
      1. create, develop, or increase amenities for the general public in a city or other district; and
      2. none of the funds of the association or society is used, or is or may become available to be used, for any other purpose that is not a charitable purpose.

        1. Subsection (1) does not apply to an amount of income derived—

        2. by a council-controlled organisation:
          1. by a local authority from a council-controlled organisation.

            1. An amount of income that the trustees of Cornwall Park, Auckland, derive from the property of the trust is exempt income.

            Compare
            Notes
            • Section CW 40 list of defined terms associated person: repealed (with effect on 1 April 2008), on , by section 47 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).