Tax reform penalising ‘true chanties’

Press, 9 April 1988, Page 12

Tax reform penalising ‘true chanties’

|PA Wellington I i r 11 Asthma Awareness Week organiser, Mr Keith i Hambleton, said this week the Government should .chase the “real tax dodgers” with taxation reform, rather than penalisj ing charities. I |; He was addressing' a i function held in the Beehive for the preserita- ; tion of j Stay Well Achievers ; Awards i to j young asthmatics. I j i i The work of the Asthma Foundation ! would certainly be affected by the ending next year of [tax i breaks for (charities and their donors, said Mr Hambleton, (the convenor of the foundation’s fiind- ( raising committee. The reasoning behind the tax reforms was; to catch I out organisations ' that set up charitable trusts as tax dodges,: he said. ' But true charities such

as church groups and health and sports bodies would be disadvantaged, he said. The Asthma Foundation would be hit both by its income being taxed and by donors being put off giving.

"It has been said that the reason for ! this (reform) is that people who give money to charity, the big earners and th'e big spenders, won’t be affected. "But our experience is that not too many of! those people actually donate to charities. It is the little people, the low incomemiddle income earners who are the ones who really give any money to organisations like u!s,” he said. Other charities had suggested their donation incomes could drop up to 40 per cent through donors not getting tax rebates.

The foundation also faced having at least 30 per cent less to spend from next April, when all its income would be taxed i at the company rate, Mr : Hambleton said.

A system of grants would also need unwieldy and inefficient bureaucratic support. In the United States it was estimated that every dollar provided by the Government cost $1.60 to process, he said.

At yesterday’s Beehive function, Mrs Naomi Lange, the; wife of the Prime Minister, presented Stay Well awards to Christopher Cole, aged 17, of Oamaru, Matthew Davenport,. aged 15, of Christchurch, Leisha Davies, aged 11, of New Plymouth, Lisa Hall, aged 10, of Taupo, Stephen Pritchard, (aged 17, of Paraparaumu, and Kate Rawcliffe, aged 13, of Timaru.