Private ruling: Deductible Gift Recipient
Date of advice: 19 August 2015
Published: August 2015
Ruling period: 01 January 2015 - 31 December 2015
Date scheme commenced: 01 January 2015

Ruling: Q1: Does the entity satisfy the special condition in paragraph (a) of item 1 of the table in section 30-15 of the Income tax Assessment Act 1997 (ITAA 1997) under the proposed new structure? | A1: Yes, it is considered that the entity meets the special condition in paragraph (a) of item 1 of the table in section 30-15 of the ITAA 1997 under the proposed new structure.

Relevant facts and circumstances: • The entity is an incorporated association and has its registered office in an Australian state. • All the board members live and work within Australia. • The Australian Charities and Non Profit Commission (ACNC) have accepted that the entity is a Public Benevolent Institution (PBI). • The entity is an endorsed as a deductible gift recipient (DGR). • All donors to the charity are Australian residents. • Almost all revenue received by the entity is sent overseas to a well-known and local government registered aid organisation. This is currently facilitated by an endorsed developing country relief fund. • All activities are carefully monitored. • Under the current structure the entity sends its funds overseas via a registered oversea aid fund. • If the entity adopts the new structure it will send funds directly to its overseas projects.

Relevant legislative provisions: Section 30-15 - Income tax Assessment Act 1997(ITAA 1997)

Reasons for decision: Detailed Reasoning - Detailed reasoning: The special condition in paragraph (a) of item 1 of the table in section 30-15 of the ITAA 1997 requires that 'the fund, authority or institution must be in Australia'. It is accepted that the entity is an 'institution'. It is an incorporated entity with a board made up of 6 individuals, it is an endorsed Public Benevolent institution registered with the Australian Charities and Non Profit Commission. The ATO view of where a fund, authority or institution is 'in Australia' is set out in its GiftPack publication. This is located on the ATO website at www.ato.gov.au where it states: The 'in Australia' condition applies to all DGRs. This means the organisation must be in Australia. If it is not in Australia, it cannot be a DGR. For funds, institutions and authorities to be in Australia, they must be established and operated in Australia. The entity was incorporated in an Australian state and has all its board and members in Australia. 100% of its management is carried on in Australia. All donations are made by Australian donors. Almost all of the revenue received is sent overseas to well-known and government registered aid organisations. As a result, it is accepted that the entity meets the special condition in paragraph (a) of item 1 of the table in section 30-15 of the ITAA 1997 under the proposed new structure.