Better targeting of NFP tax concessions: ATO will accept returns until 2014 but NFP’s will need to review back to 2011/12 with no Shortfall Penalty or SIC [83]

The ATO on Tue 19.3.2013, released details of its administrative treatment regarding the proposed changes to reform tax concessions provided to not-for-profit organisations. The changes seek to ensure that concessions are targeted only at activities directly furthering an organisation’s purpose. The changes have a general proposed start date of 1 July 2014, and transitional arrangements will apply to relevant activities commenced before 10 May 2011.

The ATO said it will accept tax returns, BASs and FBT returns as lodged during the period up until the proposed law change is passed by Parliament. It says after the new law is enacted, not-for-profit organisations will need to review their positions back to the 2011-12 income year. According to the ATO, those organisations who did not anticipate the changes correctly will need to seek an amendment to their BAS, FBT or income tax returns. It says no tax shortfall penalties will apply and any interest attributable to the shortfall will remitted to nil, up to the date of enactment of the new legislative measures.

[LTN 53, 19/3/13]