Tax exemption: Services established for “community service purposes”

The recent Federal Court decision in Wentworth District Capital Ltd v Commissioner of Taxation [2010] FCA 862 decided that, a "not-for-profit corporation" established to facilitate the provision of face-to-face banking services in a rural town lacking such services had been established for “community service purposes”  within the provisions of the Income Tax Assessment Act 1997 (Cth) s 50-10.

In a recent article posted to Mondaq by Moore Stephens the case is discussed and the following point made:

"The decision could be regarded as counter-intuitive however the Court drew a distinction between the actual provision of the community banking services, which would not have been a community service and the facilitation of such services by Wentworth District Capital Limited through an arrangement it entered into with Bendigo Bank Limited."

The article also points out "... that this position may change, as the Australian Taxation Office have appealed the decision to the Full Federal Court."

Do you have a view on the decision?

To keep up to date with Tax Laws, why not inquire about TimeBase's Point-in-time Tax Service just one of a range of Australian Legislation services provided by TimeBase.