The draft issues paper sets out the Commissioner’s initial views on interpretative and practical issues a charity may face when applying the tax exemption for business income derived under section CW 42 of the Income Tax Act 2007. 

According to CA ANZ, the finalised item will be a useful resource for charities with charitable purposes inside and outside New Zealand and who derive business income.

CA ANZ recommend the discussion about investment income be expanded to provide additional guidance or criteria that the Commissioner may take into account when deciding whether investment income is income derived from a business. CA ANZ also suggest some aspects of the items be reviewed and clarified with additional references.