Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 30.125

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.