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Ruling
Subject: Income tax exemption for the encouragement of sport
Question 1
Is the Sporting Club exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a club established for the encouragement of a game or sport under item 9.1(c) in section 50-45 of the ITAA 1997?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commences on:
1 July 2011
Relevant facts and circumstances
The Sporting Club has applied for a private ruling that it is exempt under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a club established for the encouragement of a game or sport pursuant to item 9.1(c) of section 50-45 of the ITAA 1997.
The Sporting Club received advice from that the Tax Office in 19XX that it was exempt from income tax pursuant to paragraph 23(g) of the Income Tax Assessment Act 1936. This decision was confirmed in subsequent years upon further private ruling applications.
The Sporting Club now seeks a continuation of this ruling for the years ending 30 June 2012 through til 30 June 2014.
The Sporting Club was formed to promote a specific sport in the local community.
The Sporting Club participates in a number of different competitions.
In addition, the Sporting Club caters for approximately 500 players.
The Sporting Club's main premises are located consist of offices, bar/bistro facilities, function room and gaming room which contains 70 poker machines. This is the same number of machines as has operated since 20XX. The activities of the Sporting Club have remained the same since the original PBR was granted in 19XX (with the addition of gaming machines in 1995).
The Sporting Club has confirmed that there have been no changes to both its constitution and its activities since the previous private ruling was issued. The Sporting Club further confirmed that its social facilities are unchanged since the last ruling was issued.
Relevant legislative provisions
Section 50-1 of the Income Tax Assessment Act 1997
Section 50-45 of the Income Tax Assessment Act 1997
Reasons for decision
The Commissioner issued a ruling over a number of years which confirmed that the Sporting Club was exempt from income tax under section 50-1 of the ITAA 1997 as a club established for the encouragement of a game or sport under item 9.1(c) in section 50-45 of the ITAA 1997.
As the circumstances of the Club have not changed, the ruling will be extended for another three years.