CA ANZ recently had the opportunity to comment on the draft interpretation statement PUB 00332: Goods and Services Tax – unconditional gifts.
In our view, the finalised statement will be a useful resource for non-profit bodies. However, we identify a few areas to enhance the statement.
Our submissions are:
- The value of the statement would be enhanced if it is accompanied by a fact sheet. While the draft interpretation statement is well written the language and presentation style is technical. This is likely to limit the reach of the statement, therefore additional resources from Inland Revenue would be helpful.
- The draft statement includes eight examples. We support these. We suggest an additional example be included on the scenario for a charity fundraising auction or event. Common scenarios in this context that often arise in practice include: a payment made at a silent/online charity fundraising auction; a payment made to attend a charity fundraising event (this could be a payment for a table at a breakfast, lunch or dinner event with a guest speaker).
- We comment on some aspects of the discussion in the draft interpretation statement that should be reviewed and clarified.