Non-Profit News Service No. 0081 - Draft Taxation Ruling released - what is a gift

Draft Taxation Ruling TR2004/D19 Income tax: tax deductible gifts - what is a gift has been released for public comment. The ruling draws together and summarises the many decisions of the courts on what is a gift. It expands, while being consistent with, the Tax Office's previous public statements on tax deductible gifts.

The ruling contains a comprehensive explanation of the meaning of the word 'gift' in the gift deduction provisions (Division 30 of the Income Tax Assessment Act 1997). It will help donors and deductible gift recipients (DGRs) work out whether payments of money or transfers of property to DGRs will qualify as gifts, and therefore be tax deductible to the donor. It will assist DGRs in structuring their fundraising programs in such a way that the gift deductibility status of the donations is assured for their supporters. It also explains the operation of the anti avoidance provisions in supporting the gift deductions provisions and denying deductions for ostensible gifts made as part of tax avoidance schemes.

We invite you to comment on this draft Taxation Ruling. Please forward your comments to the contact officer by the due date.

Due date: 4 February 2005
Contact officer: Marion Dexter
E-mail address: marion.dexter@ato.gov.au
Telephone: 03-9215 3747
Facsimile: 03-9215 3700
Address: PO Box 9990, Dandenong VIC 3175

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