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Income Tax Act 2007

Income - Exempt income

CW 46: Bodies promoting amateur games and sports

You could also call this:

“Tax exemption for groups promoting amateur games and sports”

If you’re part of a group that promotes amateur games or sports, you might not have to pay tax on some of the money you earn. This applies if you’re in a club, society, association, or if you’re a trustee of a trust that does this.

For your group’s income to be tax-free, your group must meet three main rules:

First, your group’s main purpose should be to promote an amateur game or sport. This means you’re helping people play a game or sport for fun, not as professionals.

Second, the game or sport you promote should be for everyone to enjoy. It should be something that the general public can watch or take part in for fun or entertainment.

Lastly, the money your group earns can’t be used to make a profit for any individual person. This includes members of your group, owners, shareholders, beneficiaries, or anyone connected to them. All the money should go towards promoting the sport or game, not into someone’s pocket.

If your group follows all these rules, the money you earn might be exempt from income tax. This means you won’t have to pay tax on this income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513279.

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Part C Income
Exempt income

CW 46Bodies promoting amateur games and sports

  1. An amount of income derived by a club, society, association, or trustee or trustees of a trust (the promoter) is exempt income if—

  2. the promoter is established mainly to promote an amateur game or sport; and
    1. the game or sport is conducted for the recreation or entertainment of the general public; and
      1. no part of the funds of the promoter is used or is available to be used for the private pecuniary profit of a member, proprietor, shareholder, beneficiary, or associate of any of them.

        Compare
        Notes
        • Section CW 46: amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
        • Section CW 46(a): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
        • Section CW 46(c): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(3)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
        • Section CW 46(c): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(3)(b) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
        • Section CW 46 list of defined terms beneficiary: inserted (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
        • Section CW 46 list of defined terms trustee: inserted (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on , by section 33(4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).