Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  | 

ATO Goes to High Court Over Charity 'Business' Tax Status


19 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.

Staff Reporter | 19 June 2008 at 2:28 pm


0 Comments


 Print
ATO Goes to High Court Over Charity 'Business' Tax Status
19 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.



PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

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 or download our contributor guidelines.

Tags : Taxation,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published.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



YOU MAY ALSO LIKE

Beyond the profits of doom

David Crosbie

Thursday, 6th August 2020 at 8:36 am

Creating better, safer mental health support starts with listening to young people

Kirra-Alyssa Horley

Thursday, 6th August 2020 at 8:00 am

Finding the right skills to ensure good governance

Contributor

Thursday, 6th August 2020 at 7:30 am

Behind closed doors: The migrant and refugee women suffering in silence

Maggie Coggan

Thursday, 6th August 2020 at 6:00 am

pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!