Taxation Determination

TD 93/185

Income tax: is expenditure incurred by a taxpayer in the course of undertaking unpaid work for a charitable organisation deductible?

This version is no longer current. Please follow this link to view the current version.

Please note that the PDF version is the authorised version of this ruling.

This document has changed over time. View its history.

FOI status:

may be releasedFOI number: I 1216177

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. No. The expenditure is not incurred in gaining assessable income. No deduction is allowable under subsection 51(1) of the Income Tax Assessment Act 1936 .

2. The expenditure incurred does not constitute a gift for the purposes of subsection 78(1) where there is no transfer of money or property . In Leary v F C of T 80 ATC 4438; (1980) 10 ATR 521, the Federal Court held that the making of a gift involved the voluntary transfer of money or property without any benefit passing to the transferor. In Case S43 85 ATC 343; 28 CTBR Case 49 , the Board of Review concluded that if a taxpayer uses his or her own property in doing work for a charity there is no transfer of that property to the charity.

Example

A taxpayer travels to an overseas country to work for an organisation without remuneration. The organisation has been declared to be an eligible fund pursuant to subsection 78(8). Airfare and travel expenses incurred in travelling to the overseas country are paid for by the taxpayer. The expenditure is not deductible under either subsections 51(1) or 78(1).

Commissioner of Taxation
9/9/93

Previously issued as Draft TD 92/D159

References

ATO references:
NO PNR T 95 Part 5

ISSN 1038 - 8982

Subject References:
Gifts

Legislative References:
ITAA ss51(1)
ITAA ss78(1)

Case References:
Leary v F C of T
80 ATC 4438
(1980) 10 ATR 521

Case S43 / Case 49
1980 ATC 343
28 CTBR(NS) 358

TD 93/185 history

	Date:	Version:	Change:
You are here	9 September 1993	Original ruling
	20 July 2005	Withdrawn

Copyright notice

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).