Sanitarium cuts weet-bix supply to the warehouse.

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#3136634 29-Sep-2023 16:39

Wombat1:
The purpose of not-for-profits is, as the name suggests, not to make money! A lot of people here seem to be out of touch with how NFP's work, comments about they need to be taxed on their earnings, NFP's don't pay tax on their profits etc. What is really being debated here? If there are "profits" then they should not be listed as a NFP. Is that not the real issue here?

So point proven that Sanitarium should pay tax as in their last filing they had a bottom line profit of circa $10 million

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Handle9

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#3136635 29-Sep-2023 16:41

Wombat1:
The purpose of not-for-profits is, as the name suggests, not to make money! A lot of people here seem to be out of touch with how NFP's work, comments about they need to be taxed on their earnings, NFP's don't pay tax on their profits etc. What is really being debated here? If there are "profits" then they should not be listed as a NFP. Is that not the real issue here?

Sanitarium is a for profit company. It exists to make money for the 7th day Adventist church. It’s not giving away Weetbix to the poor, it’s selling them as a commercial enterprise.

MikeB4

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#3136639 29-Sep-2023 16:50

So there is no legitimate reason to be tax exempt.

Handle9

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#3136641 29-Sep-2023 16:52

Wombat1:

MikeB4:

So point proven that Sanitarium should pay tax as in their last filing they had a bottom line profit of circa $10 million

If thats the case I am not sure why they listed as a non-profit. Maybe things work differently over there.

Because it's owned by a church.

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#3136643 29-Sep-2023 16:55

MikeB4: So there is no legitimate reason to be tax exempt.

The reason is legitimate as the law stands. It's nonsense but legitimate.

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#3136644 29-Sep-2023 16:57

Wombat1:

Here in Aus there are many non profit organizations, my wife even works for one and it gives us the opportunity for salary sacrificing.

Salary packaging is available for companies that are for profit. It's entirely irrelevant for this topic.

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#3136648 29-Sep-2023 17:15

Wombat1:

Handle9:

Salary packaging is available for companies that are for profit. It's entirely irrelevant for this topic.

I said salary sacrificing, not packaging.

It's the same mechanism and available for profit companies. There's zero relevance.

From the ATO: Salary sacrificing is also known as salary packaging or total remuneration packaging.

Geektastic

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#3136653 29-Sep-2023 17:31

Dingbatt:
MikeB4:

Marmite is the devil's food or at least his/her axle grease

Oh dear, I fear a Marmite vs Vegemite* battle incoming! 😁

I baulk at the notion that the government should intervene in commercial arrangements in a “command economy” kind of way. Very Muldoon-ist.

* Vegemite for me (Getting my off-topic vote in early).

Marmite. Proper Marmite. Not the sugar containing pastiche made here.

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#3136655 29-Sep-2023 17:40

Wombat1:

The purpose of not-for-profits is, as the name suggests, not to make money! A lot of people here seem to be out of touch with how NFP's work, comments about they need to be taxed on their earnings, NFP's don't pay tax on their profits etc. What is really being debated here? If there are "profits" then they should not be listed as a NFP. Is that not the real issue here?

Umm u/Wombat1 after a quick google search I think you don't know how NFP work in NZ.

https://legalvision.co.nz/startups/how-to-start-a-non-profit-organisation-in-new-zealand/

The terms non-profit, not for profit and registered charities are used interchangeably in New Zealand.

New Zealand law only defines the meaning of a Registered Charity, which refers to an organisation that has registered with Charities Services (Department of Internal Affairs).

Tax Obligations of Non-Profits

If you have registered and incorporated your non-profit organisation, you have to pay tax at the company rate. Unincorporated organisations will pay tax at the individual tax rate, which follows a progressive system in New Zealand.

From 2020-2021 year, any person or organisation that wants to get or keep a business income tax exemption must be registered with Charities Services. This tax-exempt status applies to business income used for charitable purposes in New Zealand.

Sanitarium trades under "Sanitarium Health Food Company" with the legal name "New Zealand Health Association Limited" The charity in question is the group called: Seventh Day Adventist

https://register.charities.govt.nz/Charity/CC42122

Charitable Purpose To facilitate the the mission of the Seventh-Day Adventist Church within New Zealand, Activities: Provides religious services / activities

https://register.charities.govt.nz/CharitiesRegister/ViewCharity?accountId=494b24a9-791c-dd11-99cd-0015c5f3da29&searchId=0c642a60-5604-4698-b454-5a0b53bffd46

Geektastic

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#3136665 29-Sep-2023 18:02

My personal view is that no religion should get any kind of preferential treatment in the 21st century unless they can scientifically prove that their chosen deity exists.

huckster

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#3136668 29-Sep-2023 18:20

cddt:

I think some of the "they don't pay tax" people are confused as to what it means. Charitable organisations still pay GST and their employees still pay income tax (PAYE).

That is not the company paying tax that is them collecting GST on behalf of the government and their employees paying tax.

I've seen company owners using this line when complaining about company tax - "but if I didn't build a company all these people wouldn't be paying tax" - but they are happy to benefit from the profits....

ezbee

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#3136686 29-Sep-2023 19:20

My employees tax is my tax, so i should not pay tax.

Sanitarium disappear then other companies would either expand to make up the slack, or opportunities for startups.
Likely both.
These would employ more people.

So no, your company does not own serfs, and own the tax they pay.

Do they still own a major paint company as well? Somewhere its said they own 23 companies.

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#3136687 29-Sep-2023 19:30

Handsomedan:

I would include Salvation Army

Good decent people dont do business with, encourage or be an enabler of the Salvation Army

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#3136689 29-Sep-2023 19:34

Geektastic: My personal view is that no religion should get any kind of preferential treatment in the 21st century unless they can scientifically prove that their chosen deity exists.

Try to use the word "mythology" instead of religion.

Eg. "My mother is a catholic mythology buff"
Drives them mad.

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raytaylor

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#3136693 29-Sep-2023 19:50

So I am thinking one of four things would have happened

1) Sanitarium rents shelf space at supermarkets.
This is the model where a food producer can rent shelf space, then pay the supermarket to provide services such as checkout, cash handling, shelf refilling, distribution etc. Some companies rent shelf space and do their own shelf stocking etc or use only some of the supermarket services and then provide their own staff for other services. Sometimes you will see staff from companies like Coca Cola working in the supermarket restocking shelves rather than the supermarket staff.

In this case, sanitarium wont want to leave those shelves empty that they are paying for - and the supermarket will have requirements for shelves to be kept stocked because they advertise their foot traffic walking past the shelf space as a feature to potential tenants.
Anything driving foot traffic away is bad for the supermarket when setting their shelf lease prices.

2) Sanitarium has a supply requirement and potential penalties if they cant supply.
The supermarket is buying product, adding a markup and then selling it - just like how we imagine any standard retailer to operate.
The supermarket may have an agreement in place where they will pay a certain price for the product and Sanitarium is required to keep shelves stocked.

3) No one likes selling to The Warehouse like Mitre10 - just a pain in the ass to deal with as a customer. The supermarket pays more for the product or is easier to deal with and sanitarium can make more money via supermarkets when allocating their limited output.

What I hope is actually going down....

4) Sanitarium doing good for consumers: Something within 1 and 2 is happening where Sanitarium feels they are getting shafted by the supermarkets and decided this was the best path to get the commerce commission involved, bypassing a non-disclosure agreement to get the supermarket terms of trade made public so politicians have some ammunition for the upcoming election.

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