Question

1. Describe (150 to 180 words) how NFP sector organisations adhere to government financial policies where the preparation of statutory returns are required.

Answer 1

The non-profit tax-exempt organizations mostly are required to file their tax returns annually with the IRS. Although majority of the federal taxes are exempted but still they must lodge an informational return with the IRS. The Not For Profits tax obligations may cover goods and services tax (GST), PAYG, income tax, and other employer obligations, stamp duty or land tax. But they are also eligible for exemptions or rebates on certain taxes GST, Superannuation, PAYG withholding tax, and fringe benefit tax. Those which are not eligible for income tax exemption are required to fill income tax returns and pay for income tax, but they may be eligible for reduced rates of taxation. Majority of these are eligible to access rebates, concessions, or exemptions on tax range such as exemptions on income tax; the ability to make supplies GST-free under specific conditions; a higher GST registration threshold; the ability to accept tax deductible gifts; and cap the exemptions from (or rebates of) fringe benefits tax