ATO Announces Not for Profit 'Targets' 09/10
31 August 2009 at 3:41 pm
The Australian Tax Office will target the deliberate misuse of tax concessions in the Not for Profit sector as part of its 2009-10 compliance program.
Announcing the program, the Tax Office says it will review 200 Not for Profit entities to determine continued eligibility for concessions, including deductible gift recipient status. As well the tax man will to review 95 Not for Profit employers to ensure they are complying with their responsibilities to workers.
The NFP compliance Program also focus on:
· ensuring taxable organisations understand and meet their obligations, including their responsibilities as employers
· closely-controlled organisations
· activities not consistent with any special exemption
· integrity of business systems, including record-keeping and dealing with unusual or complex transactions
· intentional or inadvertent complicity with tax avoidance arrangements of others.
On a broader scale the ATO says it will work with the trustees of prescribed private funds to make them aware of the new legislation and assist with any transitional issues.
It will work with state and territory governments and major charities and aid organisations on the application of new provisions about the declaration of a disaster.
The Federal Government has also proposed to amend the ‘in Australia’ requirements for charities to ensure it can continue to fully scrutinise organisations passing money to overseas charities and other entities.
The ATO says there will be triennial reviews of guidelines for:
· organisations on the four deductible-gift-recipient registers
· a limiting of the exemption for foreign-employment income to income earned as an aid or charitable worker in some types of government employment or projects in the national interest.
For clubs and other mutual organisations, the ATO says it will release a guide to mutuality and offer them the opportunity to make voluntary disclosures if they have made mistakes and also look for non-lodgers in this part of the sector.
It will also follow up Not for Profit organisations where they have been used in arrangements to avoid tax and it is working with grant providers and representatives of grant recipients to develop and implement a revised ruling on grants and other financial assistance.
For more information on the compliance program go to: www.ato.gov.au