Fees Incorrectly Treated as Donations – IRD Investigating

Search Entire Website
money pay funding fees

July 29, 2014.

Parents and early childhood education centres and home-based agencies are advised to take more care around money paid as donations following new information from Inland Revenue.

The IRD asserts that when parents receive services in return for payment, the payment should not qualify as a donation because the money is not given unconditionally and without benefit.

IRD has begun investigating arrangements and says it will take steps to recover excess tax credits if it feels they have been applied incorrectly. It may also seek to recover any GST that should have been paid. Penalties could also be imposed, although these may be reduced if people volunteer information.

This has possible implications for parents who pay and services that ask for donations or top-up payments for children on the 20 Hour ECE subsidy.

Has this been useful?  Give us your feedback.

You are welcome to add a link to this page on your website. Copyright belongs to the OECE so please do not copy any content without our written permission.

Information provided is of a general nature. It is provided ‘as is’, and we accept no liability for its accuracy or completeness. See our Terms and Conditions.

Related Posts

many colours of paint concept for early childhood sector groups and early childhood education system

Who is Who in our Sector

Early Childhood Education System. The Stakeholders and Key Organisations Peak Bodies / Largest ECE Service Operators Operators of more than 400 licensed services in our

Read More »
Puddle jumping after the rain

Winter and Rainy Day Activities

Winter and Rainy Day Children’s Activities. When the children are getting restless and the noise levels are going up and up and you are thinking about how to get through the day, it’s time to bring in some new ideas […]

To access this member only information, you must purchase Educator Membership.

Read More »
The Office of ECE

Share This Information

Table of Contents

Table of Contents

The Office of ECE Login

Public Area Categories
Categories