The next time the ATO complains about your client’s attention to detail remind of The Study and Prevention of Psychological Diseases Foundation Incorporated.
Back in 2007 a group of guys wanted to live the high life – sports cars, gambling,… But due to the tax rates they did not have enough money. So they duped the ATO into funding their high life… Legally!
They applied for a charity called The Study and Prevention of Psychological Diseases Foundation Incorporated. It was going to investigate certain effects on these guys, including driving sports cars and gambling. The ATO gave charity status to them and DGR status. Now, the donated their discretionary income to the charity, and used it tax free on fun stuff. They actually invested some of the amounts they invested to get returns and even donated assets worth millions of dollars.
It took until a review in 2011 for the Commissioner to take away these registrations… YOU HAVE TO BR KIDDING ME! The owners of the charity challenged the decision in the AAT but fortunately lost.
Tax free fun for four years… All on the ATO