ATO Review of Not-for-Profits

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.”

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