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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

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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