Private ruling: Income tax exemption
Date of advice: 6 June 2016
Published: July 2016
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020

Ruling: Q1: Is Applicant exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a club established for the encouragement of a game or sport under item 9.1(c) of the table in section 50-45 of the ITAA 1997? | A1: Yes

Relevant facts and circumstances: The Applicant has applied for an extension to a previous private ruling which confirmed that it was exempt from income tax under section 50-1 of the ITAA 1997 as an entity established for the encouragement of a game or sport pursuant to item 9.1(c) of the table in section 50-45 of the ITAA 1997. The Applicant has received four previous rulings confirming it is exempt from income tax pursuant to item 9.1(c) of the table in section 50-45 of the ITAA 1997. The Applicant submits that its constitution has not changed since the previous Private Ruling application was issued and that the constitution still prevents the distribution of property or income to members of the entity and requires that any surplus property on winding up is to be transferred to another entity which demonstrates that the Applicant remains a not for the profit entity. The Applicant further submits that there has been no change in the objectives of the Applicant. The promotion and encouragement of sport continues to be the Applicant's main purpose. In addition, there have been no material changes in the business activities that support the sporting objectives.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 50-1 | Income tax Assessment Act 1997 section 50-45 | Income Tax Assessment Act 1997 section 50-70

Reasons for decision: Summary: The Commissioner has issued multiple rulings to cover the period from 19XX up until 30 June 2016 which have confirmed that the Applicant is as a society, association or club, established for the encouragement of a game or sport as described in item 9.1(c) in section 50-45 of the ITAA 1997 and therefore exempt from income tax. As the circumstances of the Applicant have not materially changed, the last ruling will be extended for another four years.