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This edited version has been archived due to the length of time since original publication.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 private advice

Authorisation Number: 1012643849565

Ruling

Subject: Expenses - gifts/donations

Question

Are you entitled to a deduction for expenses you paid on behalf of a Deductible Gift Recipient (DGR) for a fund-raising event?

Answer

No.

This ruling applies for the following periods:

Year ended 30 June 2012

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You organised a fund-raising event for a registered DGR in June 20XX.

All proceeds from the event were donated to the DGR.

You covered the costs of the event totalling more than $5000.

The only benefit you received was the right to attend/participate in the event.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 30-15.

Reasons for decision

Section 30-15 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that non-testamentary gifts (to the value of $2 or more) made to a DGR that can 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

You can claim a deduction for contributions to approved organisations that relate to fund-raising events where you received a minor benefit for your contribution, provide that:

    • the contribution meets certain conditions, and

    • the benefit you received does not exceed a specified limit.

To be deductible, your contribution must meet all of the following requirements:

    • the contribution must be made to a DGR for either

    • a right to attend or participate in a fundraising event in Australia

    • the purchase of goods or services as a successful bidder at an auction that is, or is at, a fundraising event in Australia

    • the contribution must be more than $150 (and can include certain property contributions)

    • the GST-inclusive value of the right or the goods or services (the benefit) must not be more than $150 or 20% of the value of the contribution, whichever is less

    • the contribution must meet any gift conditions relating to the DGR as though it was a gift

    • the contribution must be made by an individual.

In your case, you did not gift money directly to a DGR, instead you paid the expenses of a fund-raising event on behalf of a DGR. You do not satisfy the conditions of section 30-15 of the ITAA 1997 as you did not donate money or property to the DGR.

Further, the expenses you paid, are not considered a contribution relating to a fund-raising event, as the contribution was not made to the DGR to attend or participate in the event or for the purchase of goods as a successful bidder.

Therefore, you are not entitled to a deduction for expenses paid on behalf of a DGR for a fund-raising event.


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