Moore Stephens have written a submission responding to the discussion paper from the NFP Sector Tax Concession Working Group. The submission was lodged with Treasury late last week.
We broadly agree with the framework established by the Working Group for assessing policies and agree that the criteria of fairness, simplicity and effectiveness are the correct principles for the examination of tax concessions provided to the NFP sector.
Our key comments are:
- The proposed 'in Australia' special conditions are too strict for deductible gift recipients ("DGRs"); It should be sufficient for a DGR to clearly demonstrate that the funds received from tax deductible donations are spent in Australia.
- There should be no limit to the ability of tax exempt charities and DGRs to receive refunds for franking credits.
- The restriction on a tax exempt body's ability to access the minor benefits exemption should be removed as it causes too much administrative burden for limited tax revenue.
To download a copy of our submission, please click here.
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