Tax Ruling for Public Benevolent Organisations

A ruling on Income Tax and Fringe Benefits tax for public benevolent institutions has been issued by the Australian Taxation Office.

Taxation Ruling TR 2003/5 will help non-profit organisations work out whether they are public benevolent institutions (PBIs), and help the more than 10,000 organisations currently accepted as PBIs by the Tax Office when they review to ensure that they continue to be PBIs.

The ruling explains the meaning of the expression ‘public benevolent institution’, and how it is applied to particular organisations using examples.

It also explains whether PBIs are charitable institutions (for income tax exemption), and when a PBI is taken to be in Australia (for income tax gift deductibility).

Various tax concessions can apply to PBIs, including a capped exemption from fringe benefits tax, deductible gift recipient status, and access to refunds of imputation credits on franked dividends. The ruling does not explain the concessions themselves.

The ruling draws together and summarises the many decisions of the courts on PBIs. It expands, while being consistent with, the Tax Office’s previous public statements on PBIs, and finalises draft Taxation Ruling TR 2000/D14.

Follow this link to the ATO website for more information (opens in a new browser window)

For further information

Contact	:	Non-Profit News Service Coordinator
Address	:	Australian Taxation Office
Phone	:	02 6216 1443
Fax	:	02 6216 2657
Email	:	npc-nationaloffice@ato.gov.au

WWW

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http://www.ato.gov.au