The Australian Taxation Office is reviewing arrangements by taxpayers in northern NSW and southern Queensland who may be incorrectly claiming to be a not-for-profit organisation in order to avoid paying tax.
Assistant Commissioner Scott Parkinson said that the ATO was currently reviewing instances where individuals and small business have set-up “private foundations” through which they stream their contractor or business income.
“We are currently engaging with a number of taxpayers who we believe are operating under similar structures to get a better understanding of the arrangements in place. The ATO will take compliance action where we identify taxpayers that have entered into this type of arrangement.”