Non-Profit News Service No. 0295 - Recent case: Wentworth District Capital Ltd

On 13 August 2010, Justice Perram handed down the decision in Wentworth District Capital Ltd v. Commissioner of Taxation [2010] FCA 862. The case concerned the issue of whether Wentworth District Capital Ltd was established for a community service under item 2.1 of section 50-1 Income Tax Assessment Act 1997 (ITAA 1997). Justice Perram held that in 2006 and 2007 Wentworth District Capital Ltd was established for community services purposes and the income was therefore exempt.

We are currently considering the implications of the decision. We will be providing further advice when the consequences of the decision have been considered.

For information about the Non-Profit News Service, including how to subscribe and links to previous articles, see About the Non-Profit News Service. We encourage your feedback and suggestions for future topics to be covered by the news service. You can do this by: emailing npc-publications@ato.gov.au phoning 1300 130 248.