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Edited version of your private ruling
Authorisation Number: 1012440524772
Ruling
Subject: Donation
Question
Are you entitled to a deduction for a donation of barter credits as a cash donation?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 2013
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You have accumulated barter credits.
You are thinking of donating the credits to charity.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 30
Reasons for decision
Division 30 of the Income Tax Assessment Act 1997 deals with the deductibility of gifts or contributions.
Division 30 of the ITAA 1997 provides that the types of gifts to a DGR that may be deductible include:
· money
· property (including trading stock) purchased during the 12 months before the gift was made
· property valued by the Commissioner at more than $5,000
· an item of trading stock disposed of outside the ordinary course of business
· property under the Cultural Gifts Program; or
· gifts of places listed in the Register of the National Estate.
In your case, you are looking to donate barter credits as a cash donation. It is considered that barter credits or trade dollars are not money. Therefore you are not entitled to a deduction for the donation of barter credits as a cash donation.
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