A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  


The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 63 - Non-profit sub-entities  

63-27   Application of particular provisions relating to charities etc.   Application of particular provisions

For the purposes of the provisions mentioned in subsection (2), a * non-profit sub-entity of an entity (the parent entity ) is taken to be a body of the following type, if the parent entity is a body of that type:

(a) a non-profit body;

(b) a * gift-deductible entity ;

(c) a * government school ;

(d) an * endorsed charity ;

(e) a gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997 ) under section 30-120 of the ITAA 1997;

(f) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997;

(g) a body that has a particular * gift-deductible purpose ;

(h) a body that operates a particular * retirement village ;

(i) a particular * school .

The provisions are:

(a) subsection 9-17(2) (gifts to non-profit bodies not consideration); and

(b) Subdivision 38-G (Activities of charities etc.); and

(c) Subdivision 40-E (Schools tuckshops and canteens); and

(d) Subdivision 40-F (fund-raising events); and

(e) section 111-18 (reimbursement of volunteers ' expenses); and

(f) section 129-45 (Gifts to gift deductible entities); and

(g) Division 157 (Accounting basis of charities etc.).

To avoid doubt, subsection (1) does not prevent the * non-profit sub-entity being a body of a particular type merely because the parent entity is not a body of that type.

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