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Edited version of your written advice
Authorisation Number: 1051305071293
Date of advice: 16 November 2017
Ruling
Subject: Goods and Services Tax (GST) and donations
Question
Does your donation of real property to X have any GST consequences?
Answer
No.
Your donation of real property to X constitutes a gift in accordance with Goods and Services Tax Ruling GSTR 2012/2 Goods and services tax: financial assistance payments and Taxation Ruling TR 2005/13 Income tax: tax deductible gifts - what is a gift because:
● there is a transfer of a beneficial interest in property;
● the transfer is made voluntarily;
● the transfer arises by way of benefaction; and
● no material benefit or advantage is received by the giver (payer) by way of return.
As gifts to a non-profit body are not consideration for a supply, your donation of real property is not a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 and GST does not apply.
This ruling applies for the following periods:
1 July 2016 to 30 June 2017
Relevant facts and circumstances
You are a company registered for GST.
You are in the business of selling vacant/subdivided land.
You donated real property to X which is registered as a charity with the Australian Charities and Not-for-profits Commission.
You:
● are not an associate of X,
● received no consideration, monetary or otherwise, for the transfer of the real property,
● made the transfer voluntarily,
● received no material benefit or advantage from X,
● did not express or imply any pre-conditions for the transfer, and
● donated the real property simply by way of benefaction.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
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