As the Not-for-profit (‘NFP’) self-review return is due in March, the ATO has recently published a document ‘busting’ various NFP ‘myths’.
Myth 1: All NFPs are income tax exempt.
ATO response: This is not true. Some NFPs are income tax exempt and some are taxable.
Myth 2: There is only one way to lodge the NFP self-review return.
ATO response: There are three ways, as follows:
u A ‘principal authority’ may be able to lodge using ‘Online services for business’;
u It may be possible for the return to be lodged by phoning the ATO’s automated self-help phone service on 13 72 26; and
u A registered tax agent can lodge the return through Online services for agents.
Myth 3: Anyone can lodge the NFP self-review return online.
ATO response: If lodging via Online services for business, anyone authorised to access the return in Online Services can lodge. If a registered tax agent has been engaged, they can also prepare and lodge the return in Online services for agents.
Myth 4: If a person is unsure whether their NFP has charitable purposes, then they do not need to lodge.
ATO response: The self-review return still needs to be lodged, even if it is not certain whether the NFP is charitable.