• Terranora


    The following summary of the judgment in Terranora Lakes Country Club Limited v. FC of T is provided to help you self-assess if your club is a society, association or club established for the encouragement of a game or sport. For a copy of the published case judgment see Terranora Lakes Country Club Limited v. FC of T.

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    The objects in the club's constitution included:

    • to promote the games of golf, bowls, tennis and other sports, games and pastimes, indoor and outdoor
    • to construct, establish, provide, maintain and conduct golf links, bowling greens, tennis courts, playing areas and grounds … and to construct, provide, establish, furnish and maintain club houses, pavilions and other buildings and conveniences in connection therewith.

    The club operated sporting sub-clubs promoting cricket, clay target shooting, hockey, tennis, golf, bowls, touch football, softball and equestrian sports. The sub-clubs participated in local and away competitions. A professional golf coach and a professional tennis coach were employed.

    Club membership totalled 4,076 ordinary, 226 junior and 130 social members. Sub-club membership totalled 2,854 however some members may have been members of more than one sub-club.

    The club had facilities on two sites which included:

    • members' lounge, locker rooms, billiards and darts junior games room, meeting rooms, TAB agency, 200 poker machines, auditorium, bars, bistro, restaurant
    • 18-hole golf course, bowling greens, clay target shooting ranges, 50-metre swimming pool, tennis courts, change rooms, squash court, hockey and touch football fields, cricket oval and football field and barbecue areas, and
    • the first stage of a time-share resort.

    A yearly program of sporting activities was published.

    The sub-clubs promoted facilities and events to members through regular newsletters.

    The club carried on a substantial licensed and gaming club:

    • expenditure on social activities exceeded sporting expenditure - poker machines provided 58.1% of income, bar trading 13.7%, and catering 18.5%
    • in the year of income the club had begun development of a holiday resort on its own land
    • the bulk of visitors (1,000 per day) and a proportion of members did not use the sporting facilities
    • the club's promotion was heavily directed towards gambling, dining, entertainment and accommodation.

    The court decided that the club was exempt. It concluded that, while the social activities were very extensive and could clearly be seen as an end in themselves, those activities were pursued to finance the extensive sporting activities.

      Last modified: 21 Mar 2011QC 23868