Two charities linked to Destiny Church will be stripped of their charitable status after repeatedly failing to provide annual financial returns.

Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited are two of the biggest charities of Destiny Church, founded by controversial pastor Brian Tamaki and his wife Hannah Tamaki. Hannah Tamaki is on the board of both charities.

The Charities Registration Board confirmed today it had decided to remove both organisations from the Charities Register, effective December 20.

The move will strip both organisations of their tax-exempt status. The Department of Internal Affairs did not confirm whether the charities would be required to backpay taxes.

Both charities were warned in October that they faced deregistration after failing to provide their annual returns for two years running.

Church spokeswoman Anne Williamson said at the time the charities were "on a journey" and she was confident their returns would be completed before a final extended deadline.

She said the delay was due to new Charities Commission criteria.

"We're working with a very reputable auditor who's being very thorough. We're very happy with the process."

Roger Holmes Miller, chairman of the independent Charities Registration Board, said the DIA sent notices to both charities informing them they would be deregistered after failing to meet the extended deadline.

Both filed objections to the decision, but an independent Charities Registration Board considered their case yesterday and decided to proceed with deregistration, Holmes Miller said.

"The board considered the objections but was satisfied that it is in the public interest to proceed with the removal of the charities from the register.

"The board was also satisfied that the grounds for removal have been met as there has been a persistent failure by the charities to meet their obligations under the Act."

At its meeting the board noted in particular that the charities had a "history of non-compliance with annual return obligations", he said.

"The board considered that the integrity of the Charities Register would not be maintained if charities persistently fail to meet their obligations to file annual returns under the Act."

Both charities have the option of lodging an appeal with the High Court by December 20.