Recent decision on tax exemptions for charities
On 12 June 2009, the Federal Court handed down a decision in the case of
Commissioner of Taxation v Bargwanna [2009] FCA 620 in favour of the Tax Office. The Federal Court confirmed that for a charitable fund to be entitled to be endorsed as exempt from income tax, the legislation requires it to be applied for the public charitable purposes for which it was established. Where substantial portions of the fund are intentionally applied for non-charitable purposes, it is not applied for the purposes for which it was established and therefore, fails to satisfy the special conditions of the
Income Tax Assessment Act 1997.
Posted on 15th July 2009
