Private ruling: Income tax exempt entity - society, association or club established for the encouragement of science
Date of advice: 29 March 2018
Published: June 2018
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX

Ruling: Q1: Is the Entity exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) on the basis that it is an entity as described in item 1.7 of the table in section 50-5 of the ITAA 1997 and meets the special conditions described in section 50-70 of the ITAA 1997? | A1: Yes

Relevant facts and circumstances: The Entity is a public company limited by guarantee and incorporated under the Corporations Act 2001. The Entity has applied for an extension to a private binding ruling it received previously which confirmed it was exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) on the basis that it is an entity as described in item 1.7 of the table in section 50-5 of the ITAA 1997 and meets the special conditions described in section 50-70 of the ITAA 1997. Item 1.7 in the table in section 50-5 of the ITAA 1997 provides that an entity will be exempt from income tax if it is a society, association or club established for the encouragement of science. The Entity has submitted that neither its constitution nor activities have changed since the last ruling was issued.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 50-1 | Income Tax Assessment Act 1997 Section 50-5 | Income Tax Assessment Act 1997 Section 50-70

Reasons for decision: Summary: In previous years the Commissioner issued several private rulings which confirmed that the ordinary and statutory income of the Entity was exempt from income tax under section 50-1 of the ITAA 1997 on the basis that it was an organisation as described in item 1.7 of the table in section 50-5 of the ITAA 1997 and met the special conditions described in section 50-70 of the ITAA 1997. As neither the constitution nor the activities of the Entity have changed since the previous ruling, the ruling period will be extended for another three years.