Non-Profit News Service No. 0312 - Recent court case: Cooperative Bulk Handling Ltd

On 17 December 2010, the Full Court of the Federal Court handed down its decision in Commissioner of Taxation v. Cooperative Bulk Handling Limited [2010] FCAFC 155. The case concerned whether Cooperative Bulk Handling Limited (CBH) was established for the purpose of promoting the development of Australian agricultural resource and meets the special condition under item 8.2 of section 50-40 of the Income Tax Assessment Act 1997.

The Full Court, with Siopis J. dissenting, held that CBH's income was exempt from income tax. The decision was made on the basis that CBH was established for the purpose of promoting the development of Australian agricultural resources and not carried on for the profit or gain of its individual members.

We previously advised you of developments in this case in Non-Profit News Service No. 0285 - Recent case: Cooperative Bulk Handling Ltd.

The ATO has decided not to seek special leave to appeal the Full Federal Court decision.

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