1052367514372 | Legal database

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Edited version of private advice

Authorisation Number: 1052367514372

Date of advice: 05 March 2025

Ruling

Subject: Income tax exempt entity

Question 1

Is the Company exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) a society or association established for the purpose of promoting the development of Australian manufacturing resources pursuant to item 8.2(d) of the table in section 50-40 of the ITAA 1997?

Answer 1

Yes.

This ruling applies for the following periods:

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The Company was incorporated in 19XX as a public company limited by guarantee.

The Company is an association established for the purpose of promoting the development of Australian manufacturing resources.

The Company's sole constitute document is its Constitution.

The Company is not a registered charity with the Australian Charities and Not-for-profits Commission.

The Company submitted a copy the Constitution to support the application.

The Constitution confirms the entity is not-for-profit andmust not distribute any income or assets directly or indirectly to its members as members.

The application of winding-up clause of the Constitution further details and confirms the Company status as not-for-profit:

Winding Up

(a) If any surplus remains following the winding up of the Company, the surplus will not be paid to or distributed among Members, but will be given or transferred to another institution(s) or corporation(s) which has:

(i) objects which are similar to the Objects;

(ii) a constitution which requires its income and property to be applied in promoting its objects; and

(iii) a constitution which prohibits it from paying or distributing its income and property amongst its Members to an extent at least as great as imposed on the Company by clause X.

(b) The identity of the corporation(s) or institution(s) referred to in clause XY is to be determined:

(i) by the Board; or

(ii) if the Board does not decide or does not wish to decide, then by the Members,

in writing at or before the time of dissolution, and failing such determination being made, by application to the Supreme Court of the Australian Capital Territory for determination.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 50-1

Income Tax Assessment Act 1997 section 50-40

Income Tax Assessment Act 1997 section 50-40 item 8.2(d)

Income Tax Assessment Act 1997 section 50-47

Income Tax Assessment Act 1997 section 995-1

Australian Charities and Non-for-profits Commission Act 2012 section 25-5

Charities Act 2013 section 12

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