Private ruling: Gifts of cryptocurrency to a deductible gift recipient via an intermediary
Date of advice: 25 July 2022
Published: November 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Where a donor makes donation of cryptocurrency to Deductible Gift Recipient (DGR) through a specific arrangement with a third party, can the DGR issue a receipt for a gift receipt under section 30-228 of ITAA 1997 act? | A1: Yes. When a DGR receives cryptocurrency, through its specific service agreement with a third party, the DGR can issue a receipt to the donor, for a gift, under section 30-228 of ITAA 1997 provided specific conditions a met. As a DGR you are not required to issue a receipt, but if you do you must include certain information: • the name of your organisation • your Australian business number (ABN). • a note that the receipt is for a gift of cryptocurrency, including a description (for example: one bitcoin), and • the date of the gift.

Relevant facts and circumstances: 1. The DGR is a Public Benevolent Institution and an endorsed Deductible Gift Recipient (DGR). 2. The DGR entered into a service agreement with another entity (Coy A) for the purpose of receiving gifts of cryptocurrency donations. 3. Donors are able to transfer cryptocurrency directly to the DGR or via the agent. 4. Gifts from donors are made voluntarily with no material benefit or advantage received in return. 5. Coy A acts as an intermediary between the DGR and its donors under the terms described in the service agreement. 6. Under the service agreement Coy A provides a number of services to the DGR ) 7. As outlined in the service agreement the DGR pays an annual subscription amount and processing fees to the agent for the services provided.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 30 | Income Tax Assessment Act 1997 Section 30-15 | Income Tax Assessment Act 1997 Section 30-212 | Income Tax Assessment Act 1997 Section 30-288 | Income Tax Assessment Act 1997 subsection 30-15(2) | Income Tax Assessment Act 1997 subsection 30-228(1)

Reasons for decision: Summary: When A DGR receives cryptocurrency, through its service agreements with a third party, the DGR can issue a receipt to the donor, for a gift, under section 30-228 of ITAA 1997 provided specific conditions a met. | Detailed Reasoning - Detailed reasoning: 1. The DGR has entered into a specific service agreement with Coy A (the intermediary) for the purpose of enabling donors to make gifts of cryptocurrency to the DGR. 2. Under the terms of the service agreement Coy A acts as an intermediary to facilitate the receipt of gifts of cryptocurrency, conversion into US Dollars and transfer to the DGR's USD Australian bank account, or to receive the cryptocurrency. The DGR may also choose not covert the cryptocurrency to US Dollars and receive the cryptocurrency. 3. For the services provided the DGR a pays Coy A a yearly subscription and processing fees (for each crypto donation received). 4. The Service agreement and accompanying terms and conditions also include among things warranty.

Reasons for decision: These reasons for decision accompany the Notice of private ruling for the Deductible Gift Recipient (DGR). | This is to explain how we reached our decision. This is not part of the private ruling. | Question 1: Where a donor makes donation of cryptocurrency to a DGR, that has a specific service arrangement with a third party, can the DGR issue a receipt for a gift receipt under section 30-228 of ITAA 1997 act?