Taxation Of Gifts
The heavy demands that care of the sick and aged make on State philanthropy in New Zealand may incline the present Government to lessen the discouragements to private benevolence. After more than 25 years of looking to the State to provide for every need and contingency, the people, too, are beginning to realise that the State has no mysterious supply of money—it first collects from the people. The Government is reported to be studying legislation to reduce the taxation that individuals and corporate bodies have to pay on gifts to worthy causes, the effect of which is often that a prospective donor does not make a gift, so that the State both loses its revenue and has to support the worthy cause itself. If the Government is prepared to forgo some of the revenue it might get, it will eventually find that it has less call on its resources. No doubt that will be one of the arguments used by the ViceChancellor of the University of Canterbury (Dr. L.
L. Pownall) when he sees the Minister of Finance (Mr Lake) to urge taxation concessions on gifts to the universities.
The Government has already introduced a measure of the reform promised in its election policy by providing for an income tax exemption of £25 on gifts to approved organisations. It should, however, go further to encourage wealthy companies and individuals to support educational and similar foundations, as they do in other countries. New Zealand has reached a stage of maturity where benefactors other than the taxpayer can be found. Some have already given generously to deserving objects in spite of the official discouragement that cannot always be circumvehted. A good precedent has been set by the Government’s willingness to forgo duties on the gift of a new Government House at Auckland by Sir Frank Mappin: to collect them would be unconscionable. Special legislation has been suggested to meet this case. Why not general legislation to cover similar cases?
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Bibliographic details
Press, Volume CI, Issue 29913, 29 August 1962, Page 12
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330Taxation Of Gifts Press, Volume CI, Issue 29913, 29 August 1962, Page 12
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