UNCOMMERCIAL transactions and benefits tUNCOMMERCIAL transactions and benefits to founder/donor

UNCOMMERCIAL transactions and benefits to founder/donor

41. The fund must not enter into any transaction that is uncommercial when entered into, unless the transaction is:

• with a *deductible gift recipient covered by item 1 in the table in section 30-15 of the Income Tax Assessment Act 1997; and

• in the course or furtherance of the fund’s purpose.

41.1. However, the fund may enter into an uncommercial transaction if it is on terms more favourable to the fund than would otherwise be expected under an arms’ length transaction.

PENALTY: 30 penalty units.

42. The fund must not *provide any benefit (except as set out in guideline 43), directly or indirectly, to:

• the trustee; or

• a *member, director, employee, *agent or officer of the trustee; or

• a donor to the fund; or

• a founder of the fund; or

• an *associate of any of those entities (other than a *deductible gift recipient).

PENALTY: An amount equal to the amount or value of the benefit provided.