Latest News [index] Gifts to charities - IRD alert
Charitable donations of $5.00 or more entitle the donor to tax credits. However, where a gift of property is made, no credit is available.
The IRD is aware of arrangements where money is "gifted" to a charity so that the donor can claim a tax credit and the charity can then purchase property (the original object of the gift) from the donor. It is the IRD's view that these arrangements do not amount to a gift as a true gift requires that there be no strings attached.
For more information on the IRD's views on gifts see Revenue Alert 11/01 http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1101.html
If you have any other questions about gifts or any related matters please contact a member of the Ayres Legal team.