Court decides that payments made in support of overseas mission services qualify for tax credits

The Court of Appeal found that the High Court Judge was correct when she concluded that payments made by a missionary’s sibling and other more distant relatives, as well as unrelated members of the Church of Jesus Christ of Latter-Day Saints were gifts for the purposes of s LD 1(1) of the Income Tax Act 2007.

The Court of Appeal found that the High Court Judge erred in concluding payments made by a missionary, their parents, guardians or grandparents were not gift. The Court of Appeal determined these payments were also gifts, making the payers eligible for donation tax credits.

Case: The Church of Jesus Christ of Latter-Day Saints Trust Board and Coward vs. Commissioner of Inland Revenue [2020] NZCA 143