• Multiple purpose clubs

    The main purpose of an exempt sporting club must be to encourage a game or sport.

    Difficulties in working out main purpose can arise for clubs that conduct both sporting and non-sporting activities and the non-sporting activities are not incidental or ancillary to the sporting activities. Non-sporting activities provided for members typically include social activities such as entertainment, dining, gambling and accommodation.

    Working out a club's main purpose is not based on a formula set out in the tax law. A club's main purpose can only be ascertained after objectively considering all a club's features.

      Last modified: 21 Mar 2011QC 23868