Concerns around Tax Model Around Charities Operating as Businesses w/ AUT’s Ranjana Gupta: 24 February, 2025

Concerns have been raised regarding Aotearoa’s tax model, regarding charities also operating as businesses.

Despite the current model requiring all profit obtained through a charity's business not be used for personal gain, this is a little bit of a grey area.

For example, any profit from weet-bix cereal products is tax exempt, due to Sanitarium Health Food Company being owned by the Seventh-day Adventist Church, which results in the company having an advantage over their competitors.

However, with the 2025 Budget set to be released later this year, changes may be made to this system.

News and Editorial Director and Monday Wire Host, Joel, spoke to a Senior Lecturer in the Accounting Department at AUT, Ranjana Gupta, about this tax model, and what she hopes will come out of the 2025 Budget regarding this.

They started off by asking her about what purpose a charity may have to run a business as well.