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Edited version of private ruling
Authorisation Number: 1011494270555
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Ruling
Subject:
Income Tax Assessment Act 1997 section 50-40 -income tax exemption of an Australian industrial resource.
Question:
Is the income of the Rulee exempt from income tax as per the provisions in Item 8.2 of section 50-40 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer: Yes
This ruling applies for the following period:
1 July 2009 to 30 June 2010
1 July 2010 to 30 June 2011
1 July 2010 to 30 June 2012
Relevant Facts:
The Rulee is seeking a ruling for the period 1 July 2009 to 30 June 2012.
In its application the Rulee claims that its objects and activities have not changed from when the previous applications for rulings were made and issued. As it has been noted:
· the Rulee is a not for profit company which is limited by guarantee,
· the Rulee is made up of individuals and businesses from the construction, installation, repair and servicing of the industry's products,
· the Rulee is made up of members within the industry who set themselves apart from the rest of the industry by setting standards of skill, workmanship and ethical business behaviour, and
· the Rulee provides consumer protection as the industry watchdog.
The main objects of the Rulee are:
1. To promote the industry and associated industries and activities throughout the State and further the standards, goodwill, ethics, reputation and development of the industry.
2. To promote the sale and manufacture and enjoyment of the resource and of equipment associated with the construction or installation or enjoyment of the resource.
3. To enter into any arrangements with any Government or authority, supreme, municipal, local or otherwise that may seem conducive to its objects.
Its constituent document has an acceptable non-profit clause and dissolution clause for tax exemption under the relevant provisions.
Reasons for decision:
From the information, provided it is clear that the Rulee is an association which was established for the dominant purpose of promoting the development of an Australian manufacturing resource and is not carried on for the profit or gain of any of its individual members.
Further, the resource - the development of which is being promoted, does come within the umbrella of the specified resources in section 50-40 of the ITAA 1997.
There is nothing to suggest that there has been any change to the objects or activities of the organisation since the previous ruling was provided.
Accordingly, the Rulee is considered to be exempt from income tax pursuant to Item 8.2 of section 50-40 of the ITAA 1997.
Relevant provisions:
Income Tax Assessment Act 1997 Section 50-1.
Income Tax Assessment Act 1997 Section 50-40.
Income Tax Assessment Act 1936 Paragraph 23(h).
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