Tax Discouragement To Philanthropy

Press, Volume CIII, Issue 30366, 15 February 1964, Page 12

Tax Discouragement To Philanthropy

The case for taxation concessions to remove a discouragement to philanthropy was put very moderately by Dr. Morvyn Williams, of Wellington, in his presidential address to the Royal Australasian College of Surgeons in Christchurch. Though he was speaking with particular reference to the public appeal proposed by the college, his remarks were relevant to a much wider field. Other countries, notably Australia, have long appreciated that income tax exemptions for gifts to useful projects and organisations cost the community nothing; in fact they save it money. The principle is already recognised in New Zealand, but with so low a limit of exemption that it has no practical application to a special purpose, such as a university foundation, or the fund to be raised by the college to improve the training of specialist physicians. Yet the college’s plan

is an excellent example of the benefactions that tax concessions could encourage. New Zealand evidently needs more physicians, and it is in the interests of the country to help able young doctors to get higher qualifications. Medical research, too, needs support. Before contemplating an appeal to public-spirited laymen, the college has already raised among its own members a substantial sum as the nucleus of a fund for research and training. Because of a more liberal tax law the Australian section can expect a ready response to its appeal, and the New Zealand section deserves the same opportunity. Other worthy causes are entitled to similar consideration. The promotion of philanthropy has more than money value.; it is a counter to the tendency of New Zealanders to “leave it to “ the Government ”, by which they mean that they will contribute through their taxes but not through their interest.