ATO Interpretative Decision
ATO ID 2005/365
Income Tax
Gifts: school building fund - covered outdoor learning areaFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is a Covered Outdoor Learning Area (COLA) a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
Yes. A COLA is a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997.
Facts
A school intends to build a COLA.
It will be 20 metres long, 8 metres wide and 2.7 metres high and free standing.
The COLA will be made of galvanised steel with colour bond roofing, guttering, downpipes, and a concrete floor.
It will not have any walls.
The COLA will be fixed to the land via posts embedded in concrete.
It will be used for outdoor classes and assemblies.
Reasons for Decision
Subdivision 30-B of the ITAA 1997 sets out the funds, authorities and institutions which are eligible to receive deductible gifts.
Item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997 includes:
a public fund established and maintained solely for providing money for the acquisition, construction or maintenance of a building used, or to be used, as a school or college ....
The Commissioner's view on what is a 'building' for the purposes of the above subsection is set out in Taxation Ruling TR 96/8.
Paragraph 8 of TR 96/8 states:
The word 'building' means a permanent structure usually with walls and a roof.
The above definition intentionally uses the term 'usually with walls and a roof' to indicate that, even though the conventional view of a building is that of a structure with walls and a roof, this is not always the case.
The COLA is a permanent structure as it is fixed to the ground via posts embedded in concrete. Its size and method of construction indicate that it is intended to remain in place for a considerable period of time.
As such, the COLA, even though it has no walls, is a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997.
Date of decision: 17 November 2005Year of income: Year ended 30 June 2005
Legislative References:
Income Tax Assessment Act 1997
Subdivision 30-B
subsection 30-25(1)
Related Public Rulings (including Determinations)
Taxation Ruling TR 96/8
Keywords
Associations, organisations & societies
Deductible gift recipients
Entities & taxpayer groups
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 17 November 2005 | Original statement |
| 5 September 2014 | Archived |