Private ruling: Gifts
Date of advice: 26 May 2020
Published: June 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the receipts be considered ordinary income under subsection 6-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and therefore assessable? | A1: 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.

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