If my charity has operated for a full financial year and becomes registered with ACNC part way through the subsequent FY and then applies for and gets income tax exemption from the ATO in that FY, what period does the exemption cover?
Hi @HerBay
If approved by the ATO, the income tax exemption would apply from the date you provide in the application (Section C, Question 9)
The ATO doesn't decide the date. The charity must decide what date it has met the eligibility conditions from. This can be a past date, so long as the charity was registered with the ACNC and met all other requirements.
So, if your charity operated for a full financial year but only became eligible and endorsed part way through the subsequent financial year, the exemption would apply from the date of its eligibility onward, and not before. Income from its first year of operation (when it was not eligible and endorsed) would not be tax exempt.
Let us know if you need to know anything else :)
Hi @HerBay
If approved by the ATO, the income tax exemption would apply from the date you provide in the application (Section C, Question 9)
The ATO doesn't decide the date. The charity must decide what date it has met the eligibility conditions from. This can be a past date, so long as the charity was registered with the ACNC and met all other requirements.
So, if your charity operated for a full financial year but only became eligible and endorsed part way through the subsequent financial year, the exemption would apply from the date of its eligibility onward, and not before. Income from its first year of operation (when it was not eligible and endorsed) would not be tax exempt.
Let us know if you need to know anything else :)
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