ABSTRACT
This chapter is concerned with eligibility for tax concessions. As demonstrated by the recent report by the OECD on Taxation and Philanthropy, most countries provide some tax concessions to entities that meet certain requirements, and the requirements are remarkably consistent across common law and civil law countries: the entity must be not for profit (i.e., not for private profit), have a ‘worthy’ purpose and provide public benefits. This last requirement mandates that any private benefit should be incidental to the benefit to the wider public. However, recent cases in Australia suggest that this framework is being ignored and that some entities that provide significant benefits to their members are being recognised as charities. The Australian experience serves as a reminder to other countries about the importance of transparency and the need for ongoing vigilance in relation to eligibility for tax relief.
