Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  | 

Tax Office Warning On Accommodation Claims


26 March 2007 at 12:19 pm
Staff Reporter
The Australian Tax Office has warned charities to be wary of entering into arrangements designed to secure input tax credits by treating residential accommodation as GST-free.

Staff Reporter | 26 March 2007 at 12:19 pm


0 Comments


 Print
Tax Office Warning On Accommodation Claims
26 March 2007 at 12:19 pm

The Australian Tax Office has warned charities to be wary of entering into arrangements designed to secure input tax credits by treating residential accommodation as GST-free.

Tax Commissioner Michael D’Ascenzo says the Tax Office is concerned some charities may be acting on bad advice and generating an artificial arrangement with other associated charities to gain a tax benefit.

The arrangements involve charities leasing land and buildings to other associated charities in order to exploit concessionary GST provisions. No actual payments are made on the lease, but the associated charity treats the supply of accommodation to residents as GST-free and claims input tax credits.

The ATO says Charities and their associates need to be careful when accepting advice on these types of arrangements. By entering into these arrangements people may be claiming tax credits they are not entitled to. The Tax Office says it’s concerned that anti-avoidance provisions and general provisions of the GST laws may apply to such arrangements and this is currently under review. It says if charities are unsure about their GST obligations they can request a private ruling from the Tax Office.

The ATOs detailed ‘Taxpayer Alert’ on this issue can be found here.



PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Tags : Taxation,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Disadvantage is a virus, it’s time we intervened with a vaccine

Dr Lisa J. Griffiths

Friday, 7th August 2020 at 4:32 pm

Beyond the profits of doom

David Crosbie

Thursday, 6th August 2020 at 8:36 am

Creating better, safer mental health support starts with listening to young people

Kirra-Alyssa Horley

Thursday, 6th August 2020 at 8:00 am

pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!