ATO targeting private not-for-profits
As a part of its ever tightening compliance net, the ATO has recently announced it is targeting specific tax avoidance behaviour in the not-for-profits sector. The first is private foundations used to operate businesses or income producing activities on which no tax is paid. In some cases, a small portion of the income made may be paid to humanitarian or social causes, such as through charities which is used as justification for the foundation’s purported tax-free status. The second is public benevolent institutions using schemes to avoid or reduce FBT.
