Submitted by Max
Budget to crack down on charities loophole
by Michelle Grattan
May 7, 2011
THE federal budget will close a tax loophole to prevent substantial revenue being lost through charities and other non-profit organisations running businesses unrelated to their altruistic work.
These businesses get the exemption from income tax that their parent bodies enjoy. The crackdown will mean they will pay income tax on the profits they retain in their commercial undertakings, rather than sending them back to altruistic work.
Full story: http://www.theage.com.au/national/budget-to-crack-down-on-charities-loophole-20110506-1ec9w.html
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Submitted by Gary
Charities face profits being taxed in budget
by Phillip Coorey, Peter Hartcher
May 7, 2011
THE federal budget will put a lid on the practice of so-called charities using their tax-free status to generate business income for no charitable purpose whatsoever.
In changes to be announced in the federal budget on Tuesday, not-for-profit organisations will have to pay tax on profits that are kept for commercial purposes and not redirected towards the organisation's altruistic purpose.
Full story : http://www.smh.com.au/national/charities-face-profits-being-taxed-in-budget-20110506-1ec2u.html
