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Edited version of private advice
Authorisation Number: 1051687027497
Date of advice: 26 May 2020
Ruling
Subject: Gifts
Question
Will the receipts be considered ordinary income under subsection 6-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and therefore assessable?
Answer
No. The overall circumstances lead to the receipts being a gift made voluntarily to you. There is not a sufficient connection to services rendered by you or your income producing activity. The receipts were given to you for personal reasons and are non-assessable. Further information on the principles relevant to determining whether a transfer of money or property constitutes a gift can be found in Taxation Ruling TR 2005/13.
As no expenses are deductible in relation to the receipts, the assessable recoupment provisions under Division 20 of the ITAA 1997 do not apply.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are a professional.
You received funds from an organisation for your personal benefit. There was no obligation on you to do anything for the funds.
You are not in the business of carrying on a fundraising operation.
You will not claim any expenses in relation to the funds raised as income tax deductions.
Relevant legislative provisions
Section 6-5 of the Income Tax Assessment Act 1997
Section 20-20 of the Income Tax Assessment Act 1997