Chief Stipe Posted yesterday at 12:13 AM Share Posted yesterday at 12:13 AM Changes to the way Incorporated Societies are set up and financial reporting requirements have changed under the new Act. These changes are about to be enforced progressively over the next 12 months. If you read the Wellington Racing Club Annual Report you won't be particularly enlightened about the profitability of the Club as there are essentially only two line items in the financial accounts - a fee paid to RACE for administration ($64k) and revenue from RACE of $723k which is essentially a dividen share from RACE's operations. A third figure is preseneted which is the Equity share of the WRC in RACE - approximately $16m which is roughly equivalent to Awapuni's (Manawatu Racing Club) equity share. The RACE annual report does NOT individually give a breakdown of the profit and loss, operating costs and revenue of each of the shareholder clubs other than a table of the three figures mentioned above e.g. the fee paid to RACE, the dividend received from RACE and the movements in the Equity share. Arguably the way the individual Clubs financials are presented do not meet the regulatory financial reporting standards. With pressure mounting to remove the tax free status of Incorporated Societies coupled with the new reporting standards perhaps we will see the some cracks occur in the RACE structure. At the very least improved transparency. What is clear there doesn't seem to be enough equity between all the RACE clubs to build a new track. RACE_Inc (1).pdf WRC_Accounts (1).pdf 3 Quote Link to comment Share on other sites More sharing options...
Murray Fish Posted yesterday at 03:31 AM Share Posted yesterday at 03:31 AM 2 hours ago, Chief Stipe said: Changes to the way Incorporated Societies are set up and financial reporting requirements have changed under the new Act. Over the years I have been a member of many IS, starting quite a few! Have always like the simple legal structure that they offered! Especially so for any emerging organic local grouping! Re Racing Clubs today, do they actually 'deserve' to be so? I think most have to pay their local rates nowadays? Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted yesterday at 04:32 AM Author Share Posted yesterday at 04:32 AM Well there is a lot of legislative pressure coming that will force Incorporated Societies to be efficient rather than rely on a tax break. From a taxpayer perspective answer this simple question: How does an organisation with $60m plus in equity not pay corporate income tax? 3 Quote Link to comment Share on other sites More sharing options...
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