ATO Interpretative Decision
ATO ID 2002/458 (Withdrawn)
Income Tax
Deductibility of a donation made in the taxpayer's name by another personFOI status: may be released
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This ATO ID is withdrawn as the Tax Office publication GiftPack for deductible gift recipients & donors contains the Tax Office view on the deductibility of donations under Division 30 of the Income Tax Assessment Act 1997.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Can the taxpayer claim a deduction for a donation made in their name by another person under section 30-15 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The taxpayer cannot claim a deduction for a donation made in their name by another person under section 30-15 of the ITAA 1997 as the taxpayer did not personally incur the expense.
Facts
A monetary donation was made to a charity in the taxpayer's name by another person.
The intention of the donor in making the donation in the taxpayer's name was so that the taxpayer could claim an income tax deduction for the donation.
The recipient charity is endorsed as a deductible gift recipient under section 30-120 of the ITAA 1997.
Reasons for Decision
Subsection 30-15(1) of the ITAA 1997 provides that:
'You can deduct a gift or contribution that you make...' [emphasis added]
This means that a taxpayer must personally incur the expense or make the payment or contribution.
The donation was made in the taxpayer's name by another person. The expense was incurred by a person other than the taxpayer. The taxpayer is therefore not considered to have made a donation for the purposes of section 30-15 of the ITAA 1997.
Accordingly, the taxpayer is not entitled to claim a deduction for the donation under section 30-15 of the ITAA 1997.
Date of decision: 01/02/2002
Legislative References:
Income Tax Assessment Act 1997
section 30-15
Keywords
Gifts & donations
Deductions & expenses
ISSN: 1445-2782
| Date: | Version: | |
| 1 February 2002 | Original statement | |
| You are here | 14 December 2007 | Archived |