Non-Profit News Service No. 0345 - Charities taxation ruling released

On 12 October 2011, the Australian Taxation Office (ATO) released Taxation Ruling TR 2011/4 Income tax and fringe benefits tax: charities.

The ruling explains our view of the meaning of 'charitable' for the purposes of the terms 'charitable institution' and 'fund established for public charitable purposes' where they are used in income tax and fringe benefits tax legislation.

It provides our views following recent significant decisions of the High Court and Federal Court including:

• Federal Commissioner of Taxation v. Word Investments Limited
• Aid/Watch Incorporated v. Federal Commissioner of Taxation.

The ruling applies to income years starting both before and after its date of issue. It replaces TR 2005/21 and finalises Draft Taxation Ruling TR 2011/D2. We previously advised of these rulings in:

• Non-Profit News Service Article No. 0324 - Just released: draft ruling on charities and decision impact statement on Aid/Watch
• Non-Profit News Service No. 0130 - Charities taxation ruling released.

For information about the Non-Profit News Service, including how to subscribe and links to previous articles, see About the Non-Profit News Service. We encourage your feedback and suggestions for future topics to be covered by the news service. You can do this by: emailing us at npc-publications@ato.gov.au phoning us on 1300 130 248.