Tax office focus on compliance

THE Australian Taxation Office has outlined a number of compliance policy recommendations for the not-for-profit sector in its 2010-11 compliance program.

The ATO’s general approach across the next year will be to educate the community on obligations and entitlements to concessions by: offering a range of publications, advisory and electronic services; ensuring non-profit organisations comply with their obligations; and focusing on those engaging in deliberate misuse of tax concessions.

As part of the compliance program, the ATO will work to develop a website and email service advising the general public of tax entitlements and obligations.

The tax office will also respond to the High Court’s ruling that a commercial business with exclusively charitable objects that directed its profits to charities was eligible for endorsement as a charitable institution by monitoring the sector to identify whether organisations are modifying their structure or activities to take advantage of this decision.