Income Tax Act 2007 section 257JD

Accreditation as a social impact contractor

Section 257JD defines what an "accredited social impact contractor" is, sets out the conditions a company must meet to obtain accreditation from a Minister of the Crown, and explains when accreditation can be withdrawn.

• An accredited social impact contractor must be a company limited by shares that has applied for and received accreditation from a Minister of the Crown in the prescribed form and manner.
• The company must have entered into a social impact contract, must have been established solely for the purpose of entering into and carrying out that contract (or purposes incidental to it), and must not carry out excluded activities as a whole or substantial part of its work under the contract.
• The company must have existed for no purpose other than entering into and carrying out a social impact contract since the date of its incorporation — it cannot have had other business purposes at any point in its history.
• A Minister of the Crown may withdraw accreditation if the company's sole-purpose condition or the excluded-activities condition ceases to be met, with the withdrawal taking effect from the time the condition was breached or from a later date at the Minister's discretion.