Community Sector Banking
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  | 

Tax Office Warning On Accommodation Claims


Monday, 26th 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.

Monday, 26th March 2007
at 12:19 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Tax Office Warning On Accommodation Claims
Monday, 26th 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.




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

Tags : Taxation,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published.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



YOU MAY ALSO LIKE

Court Decision Points the Way to DGR Category Simplification

Lina Caneva

Tuesday, 24th June 2014 at 11:00 am

NDIS Levy Confirmed

Staff Reporter

Tuesday, 30th April 2013 at 10:44 am

Charity Regulator to Clash with State Regulators

Staff Reporter

Tuesday, 31st July 2012 at 12:16 pm

New Amendment Shores Up NFP Payroll Tax Loophole

Staff Reporter

Wednesday, 25th July 2012 at 2:52 pm

POPULAR

‘They don't see eye-to-eye’: Leadership turmoil engulfs the ACNC

Luke Michael

Tuesday, 16th April 2019 at 8:24 am

People with severe mental illness left behind in NDIS transition

Luke Michael

Tuesday, 16th April 2019 at 4:25 pm

NFPs struggling to measure their impact

Luke Michael

Thursday, 11th April 2019 at 4:33 pm

Government under mounting pressure over disability royal commission appointees

Luke Michael

Thursday, 18th April 2019 at 5:36 pm

Community Sector Banking
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!