Non-Profit News Service No. 0319 - Bargwanna Case: Federal Court allows appeal

On 8 October 2010, the Full Federal Court handed down a judgement in Bargwanna v. Commissioner of Taxation [2010] FCAFC 126. The applicant then lodged a notice of motion to have the orders varied.

On 17 February 2011, the Full Federal Court vacated the previous orders and allowed the appeal in Bargwanna v. Commissioner of Taxation (No. 3) [2011] FCAFC 18 (Bargwanna Case).

In allowing the appeal, the Full Federal Court decided that the proceedings are to be remitted to the Administrative Appeals Tribunal (AAT). The AAT is to determine, based on the evidence already admitted, whether or not the fund as a whole was being applied to the relevant charitable purpose.

The Commissioner is considering whether to seek special leave to appeal the Bargwanna Case to the High Court.

We previously advised of the original decision in Non-Profit News Service No. 0247 - Recent case: fund denied charitable status.

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