Income Tax – Charity – Land and Income Tax Act 1954, S 84b
Recent Law, p.12, Febuary 1978
3 Pages Posted: 1 Feb 2010 Last revised: 1 May 2015
Date Written: Febuary 1, 2010
Molloy v Commissioner of Inland Revenue (1977) 2 TRNZ 211 (SC) called into question whether an anti-abortion society operated for a charitable purpose. On appeal, the Court of Appeal ( 1 NZLR 688) upheld the finding of Justice Mahon in the Supreme Court that the Society’s main object was political, as it existed principally to oppose change to statutory provisions about abortion.
The case remains good authority for the proposition that groups with a predominantly political purpose will not qualify as charities. Section 5(1) of the Charities Act 2005 contains the same test for charitable purpose as section 2 of the Land and Income Tax Act 1954. The society must be carried on for a charitable purpose that relates to the relief of poverty, or the advancement of education or religion, or any other matter beneficial to the community.
Keywords: Tax, Income Tax, Donations Rebate, Charity, Anti-Abortion, Political Purpose, Charitable Purpose, Charities Act 2005 s 5, New Zealand.
JEL Classification: K34
Suggested Citation: Suggested Citation