Public Benevolent Institutions - New Tax Ruling
23 June 2003 at 1:06 pm
The Australian Tax Office has issued a ruling on Income tax and fringe benefits tax for public benevolent institutions.
The ruling will help Not for Profit organisations work out whether they are public benevolent institutions (PBIs), and help the more than 10,000 organisations currently accepted as PBIs by the Tax Office to continue to be PBIs.
The ruling explains the meaning of the expression ‘public benevolent institution’, and how it is applies to particular organisations using examples. It also explains whether PBIs are charitable institutions (for income tax exemption), and when a PBI is taken to be in Australia (for income tax gift deductibility).
Various tax concessions can apply to PBIs, including a capped exemption from fringe benefits tax, deductible gift recipient status, and access to refunds of imputation credits on franked dividends. The ruling does not explain the concessions themselves.
The ruling draws together and summarises the many decisions of the courts on PBIs. It expands the Tax Office’s previous public statements on PBIs, and finalises draft Taxation Ruling TR 2000/D14.
If you would like a copy of the Tax Ruling for Public Benevolent Institutions in PDF Format just send an e-mail to probono@probonoaustralia.com.au.
