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‘MONEY POURING OUT OF ITS EARS’: ON THE TAXATION OF REALLY PROFITABLE NON‐PROFIT ORGANISATIONS IN AUSTRALIA
Author(s) -
GjemsOnstad Ole
Publication year - 1994
Publication title -
australian journal of social issues
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.417
H-Index - 30
eISSN - 1839-4655
pISSN - 0157-6321
DOI - 10.1002/j.1839-4655.1994.tb00940.x
Subject(s) - project commissioning , profit (economics) , publishing , business , income tax , face (sociological concept) , economics , tax haven , finance , public economics , double taxation , tax avoidance , law , political science , sociology , microeconomics , social science
Under current law Australia appears to be a tax haven for certain non‐governmental institutions. Millions of ordinary business income may go untaxed and the deductibility for donations is unlimited – both are very generous tax measures in an international context. The basic problems of most Australian non‐profit organisations are not taxation; it is their non‐profit status and lack of funds. Anybody interested in the non‐governmental sector should be willing to face the question: What is an equitable tax treatment? The short‐term tactic of ducking the question may not be the best or most beneficial long‐term strategy.