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INCOME TAX ASSESSMENT ACT 1997 - SECT 30.125

Entitlement to endorsement

Endorsement of an entity that is a fund, authority or institution

             (1)  An entity is entitled to be endorsed as a * deductible gift recipient if:

                     (a)  the entity has an * ABN; and

                     (b)  the entity is a fund, authority or institution that:

                              (i)  is described (but not by name) in item 1, 2 or 4 of the table in section 30-15; and

                             (ii)  is not described by name in Subdivision 30-B if it is described in item 1 of that table; and

                            (iii)  meets the relevant conditions (if any) identified in the column headed "Special conditions" of the item of that table in which it is described; and

                     (c)  the entity meets the requirements of subsection (6), unless:

                              (i)  the entity is established by an Act; and

                             (ii)  the Act (or another Act) does not provide for the winding up or termination of the entity; and

                     (d)  in the case of an * ancillary fund:

                              (i)  the fund complies with the rules in the * public ancillary fund guidelines or the * private ancillary fund guidelines (whichever are applicable); and

                             (ii)  all of the trustees of the fund comply with those rules.

Endorsement of an entity for operating a fund, authority etc.

             (2)  An entity is entitled to be endorsed as a * deductible gift recipient for the operation of a fund, authority or institution that is described (but not by name) in item 1, 2 or 4 of the table in section 30-15 and is not described by name in Subdivision 30-B if:

                     (a)  the entity has an * ABN; and

                     (b)  the entity:

                              (i)  legally owns the fund; or

                             (ii)  includes the authority or institution; and

                     (c)  the fund, authority or institution meets the relevant conditions (if any) identified in the column headed "Special conditions" of that item; and

                     (d)  the entity meets the requirements of subsection (6), unless:

                              (i)  the entity is established by an Act; and

                             (ii)  the Act (or another Act) does not provide for the winding up or termination of the entity; and

                     (e)  the entity meets the requirements of section 30-130, unless the entity is endorsed as a deductible gift recipient under paragraph 30-120(a).

Relevant special conditions in table in section 30-15

             (3)  To avoid doubt:

                     (a)  a condition requiring the fund, authority or institution to meet the requirements of section 30- 17 is not a relevant condition for the purposes of subparagraph (1)(b)(iii) or paragraph (2)(c) of this section; and

Note:       Section 30- 17 requires the entity to be endorsed under this Subdivision as a deductible gift recipient.

                     (b)  in the case of a fund, authority or institution that is described in item 1 of the table in section 30-15--a condition set out in the relevant table item in Subdivision 30-B, including a condition identified in the column headed "Special conditions--fund, authority or institution" of that item (if any), is a relevant condition for the purposes of subparagraph (1)(b)(iii) or paragraph (2)(c) of this section.

Note:       Paragraph (c) of the column headed "Special conditions" of item 1 of the table in section 30-15 requires any conditions set out in the relevant table item in Subdivision 30-B to be satisfied.

Transfer of assets from fund, authority or institution

             (6)  A law (outside this Subdivision), a document constituting the entity or rules governing the entity's activities must require the entity, at the first occurrence of an event described in subsection (7), to transfer to a fund, authority or institution gifts to which can be deducted under this Division:

                     (a)  any surplus assets of the gift fund (see section 30-130); or

                     (b)  if the entity is not required by this section to meet the requirements of section 30-130--any surplus:

                              (i)  gifts of money or property for the principal purpose of the fund, authority or institution; and

                             (ii)  contributions described in item 7 or 8 of the table in section 30-15 in relation to a * fund-raising event held for that purpose; and

                            (iii)  money received by the entity because of such gifts or contributions.

Events requiring transfer

             (7)  The events are:

                     (a)  the winding up of the fund, authority or institution; and

                     (b)  if the entity is endorsed because of a fund, authority or institution--the revocation of the entity's endorsement under this Subdivision relating to the fund, authority or institution.

Note 1:       There are 2 ways an entity can be endorsed because of a fund, authority or institution. An entity can be endorsed either because it is a fund, authority or institution or because it operates a fund, authority or institution.

Note 2:       Section 426- 55 in Schedule 1 to the Taxation Administration Act 1953 deals with revocation of endorsement.

Note 3:       The entity is also required to keep appropriate records: see section 382- 15 of the Taxation Administration Act 1953.



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