Private ruling: Income Tax - Exemption
Date of advice: 23 June 2016
Published: August 2016
Ruling period: Income years ended 30 June 200A to 30 June 200B

Ruling: Q1: Is the rulee exempt from income tax in the years to which this ruling applies, pursuant to item 9.2 of the table in section 50-45 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The entity is an unincorporated entity. The entity is a not-for-profit entity and it is not a registered charity. Purpose of the entity is to provide musical tuition and band experience. On the facts, the entity complies with all the substantive requirements in its governing rules and applies its income and assets for the purpose it was established.

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

Reasons for decision: Summary: The entity was established for musical purpose that it is not carried on for the profit or gain of its individual members as described under item 9.2 of the table in section 50-45 of the ITAA 1997 and it meets the conditions as set out in section 50-75 of the ITAA 1997. It is therefore exempt from income tax under section 50-1 of the ITAA 1997.