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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Expenditure specific to certain entities

DV 12: Maori authorities: donations

You could also call this:

“Tax deductions for Māori authorities when making donations”

If you are a Maori authority, you can get a tax deduction for donations you make. You can deduct donations to Maori associations for purposes outlined in the Maori Community Development Act 1962. You can also deduct charitable or public benefit gifts you make to donee organisations.

However, there’s a limit to how much you can deduct. If you have made a donation that is considered an asset ignored under section HR 12, you can’t deduct that amount.

The total amount you can deduct for all donations and gifts in a year is limited. It can’t be more than what your net income would be for that tax year if this rule didn’t exist.

This rule adds to the general permission for deductions and overrides the capital limitation. But other general limitations still apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514166.

Topics:
Money and consumer rights > Taxes
Māori affairs > Treaty of Waitangi
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Part D Deductions
Expenditure specific to certain entities

DV 12Maori authorities: donations

  1. A Maori authority is allowed a deduction for—

  2. a donation that it makes to a Maori association, as defined in the Maori Community Development Act 1962, for the purposes of the Act:
    1. a charitable or other public benefit gift that it makes to a donee organisation.

      1. Despite subsection (1), a Maori authority is not allowed a deduction for the amount of a donation it makes or for the amount of a charitable or other public benefit gift it makes, to the extent to which the amount is, for the Maori authority, an asset ignored for the purposes of section HR 12 (Non-exempt charities: treatment of tax-exempt accumulations) and described in section HR 12(3)(a).

      2. The deduction for the total of all donations and gifts made in an income year is limited to the amount that would be the Maori authority’s net income in the corresponding tax year in the absence of this section.

      3. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

      Compare
      Notes
      • Section DV 12(1)(b): amended, on , by section 108(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DV 12(1)(b): amended, on , by section 348(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section DV 12(1B) heading: inserted (with effect on 14 April 2014), on , by section 155 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
      • Section DV 12(1B): inserted (with effect on 14 April 2014), on , by section 155 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
      • Section DV 12(2): amended, on , by section 348(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section DV 12 list of defined terms donee organisation: inserted, on , by section 108(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).