FAQ: What are the consequences when an organisation that has been approved for section 18A purposes abuses this approval?

A person who is in a fiduciary capacity responsible for the management and control of the income or assets of a PBO which has been approved for section 18A purposes will be accountable to ensure that the donations for which tax deductible receipts were issued were used for the purpose of carrying on the Part II PBAs. Where the Commissioner has grounds for believing that a PBO has acted in contravention of the requirements, the Commissioner may inform the PBO that the donations received will be treated as taxable income in the hands of the PBO and an assessment will be issued.

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