Section DV 8 — Income Tax Act 2007: Non-profit organisations

DV 8 Non-profit organisations When this section applies (1) This section applies when an incorporated or unincorporated organisation— (a) does not have the purpose of making a profit for a proprietor, member, or shareholder; and (b) has a constitution that prohibits a distribution of property in any form to a member, proprietor, or shareholder. Amount of deduction (2) The organisation is allowed a deduction for the lesser of— (a) $1,000; and (b) the amount that would be the organisation’s net income in the absence of this section. Link with subpart DA (3) This section supplements the general permission. The general limitations still apply. Defined in this Act: amount , deduction , general limitation , general permission , net income , shareholder , supplement , Compare: 2004 No 35 s DV 8