New Resources: Tax Liability for Sports/Adjuncts and Prize Payments
9 July 2025
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Circular 25-049 Relevant for Club Committees, Management and Adjuncts/Sections |
Clubs New Zealand has developed two new facts sheets to help clubs navigate important tax obligations relating to adjuncts and sections. These resources are now available to download via the Clubs New Zealand website.
Managing financial compliance across all aspects of club operations can be complex, especially when adjuncts or sections operate somewhat independently. We are increasingly aware of situations where adjuncts or sections are banking outside of the main club structure, and unfortunately, this is leading to GST not being properly accounted for and income not being declared. These practices can expose clubs to unnecessary risk.
The new Taxation Liability for Adjuncts/Sections fact sheet clearly outlines the two acceptable legal structures for adjuncts from a tax perspective and strongly recommends integrating all adjunct financial activity into the main club's accounting system. This not only simplifies compliance but also ensures transparency and consistency.
The Prize Payments to Amateur Sports Persons fact sheet provides important clarification around the treatment of prize money, including when withholding tax must be deducted and how to manage amateur versus professional declarations.
We encourage clubs to download these resources and review your internal processes alongside your adjuncts/sections. If you have any concerns or need further support, we strongly recommend speaking with your club's accountant or financial advisor.
Access the Fact Sheets:
These fact sheets have been reviewed by Clubs New Zealand’s tax advisor to ensure they reflect current guidance and best practice. However, they are intended as general guidance only. Each club’s circumstances may differ, and we strongly advise clubs to seek independent tax and financial advice. These fact sheets should not be relied upon as a substitute for professional advice.
