Income tax: are compulsory school enrolment fees deductible under paragraph 78(1)(a)(xv) of the Income Tax Assessment Act 1936 if paid or transferred to a school building fund?
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FOI status:may be releasedFOI number: I 1214577
|This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).|
3. A compulsory payment which may later be transferred to a school building fund is not deductible at any time. This is so even if the parent/guardian can choose to have the fee directed to the building fund via an administering body.
Example: On 1 May 1992 P pays $500 to the XYZ School General Account to confirm enrolment of child C for the 1993 school year. This money may or may not be refunded when the child leaves the school.On 1 March 1992 the $500 is transferred at P's direction from the XYZ School General Account to the School Building Fund. As P has no control over the money other than to direct it to the School Building Fund, and the fact that the initial payment was compulsory, no deduction is available as a gift.
Commissioner of Taxation