Salary Survey 2018
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  | 

ATO Goes to High Court Over Charity ‘Business’ Tax Status


Thursday, 19th June 2008 at 2:28 pm
Staff Reporter
The Australian Tax Office has been granted special leave to appeal to the High Court over a Federal Court decision made last November that a charity could raise money through business without paying company tax.

Thursday, 19th June 2008
at 2:28 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
ATO Goes to High Court Over Charity ‘Business’ Tax Status
Thursday, 19th June 2008 at 2:28 pm

The Australian Tax Office has been granted special leave to appeal to the High Court over a Federal Court decision made last November that a charity could raise money through business without paying company tax.

The High Court appeal puts on hold any move by Australian charities to seek millions of dollars back from the Australian Taxation Office or plans for new charity business ventures.

Last year’s Federal Court ruling meant that charities could operate businesses while staying tax-exempt, as long as the charitable purpose is the only motive for making profit.

The Full Bench of the Federal Court ruling related to the case of a Melbourne funeral business called Bethel Funerals, which is run to raise money for the Not for Profit organisation Wycliffe Bible Translators to translate the Bible into hundreds of different languages.

The business was set up under the name of Word Investment Limited.

Wycliffe’s solicitor, Murray Baird of Moores Legal Services said at the time that the drying up of government funding for charities, combined with donor fatigue, meant that charities had to become more entrepreneurial to survive.

The Australian Tax Office took the view that they had crossed the line, that churches and charities must not be too entrepreneurial.

The ATO says it continue to apply the Tax Office view pending the outcome of the appeal to the High Court.




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Tags : Taxation,

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Court Decision Points the Way to DGR Category Simplification

Lina Caneva

Tuesday, 24th June 2014 at 11:00 am

NDIS Levy Confirmed

Staff Reporter

Tuesday, 30th April 2013 at 10:44 am

Charity Regulator to Clash with State Regulators

Staff Reporter

Tuesday, 31st July 2012 at 12:16 pm

New Amendment Shores Up NFP Payroll Tax Loophole

Staff Reporter

Wednesday, 25th July 2012 at 2:52 pm

POPULAR

Motivating Factors Protect Against Negative Stress

Wendy Williams

Thursday, 5th April 2018 at 9:34 am

Greens Call for Universal Basic Income

Luke Michael

Thursday, 5th April 2018 at 9:03 am

Animal Shelter Loses Charity Status

Wendy Williams

Wednesday, 11th April 2018 at 5:20 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


Salary Survey 2018
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!