Private ruling: Donation
Published: March 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for a donation of barter credits as a cash donation? | A1: No.

Relevant facts and circumstances: You have accumulated barter credits. You are thinking of donating the credits to charity.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 30

Reasons for decision: Summary: Division 30 of the Income Tax Assessment Act 1997 deals with the deductibility of gifts or contributions. Division 30 of the ITAA 1997 provides that the types of gifts to a DGR that may 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 · property under the Cultural Gifts Program; or · gifts of places listed in the Register of the National Estate. In your case, you are looking to donate barter credits as a cash donation. It is considered that barter credits or trade dollars are not money. Therefore you are not entitled to a deduction for the donation of barter credits as a cash donation.