| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012795508742
Ruling
Subject: Income Tax Exemption
Question 1
Is the applicant entity exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997), on the basis that it is an entity as described in item 1.7 of the table in section 50-5 of the ITAA 1997, being a society association or a club established for the encouragement of science and meets the special conditions as described in section 50-70 of the ITAA 1997?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
The scheme commences on:
1 July 2015
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The applicant entity is a public company limited by guarantee and incorporated under the Corporations Act 2001.
The entity has applied for an extension to the latest private binding ruling issued to it by the Commissioner, which confirmed it was exempt from income tax pursuant to section 50-1 of the ITAA 1997, on the basis that it is an entity as described in item 1.7 of the table in section 50-5 of the ITAA 1997 and it meets the special conditions as described in section 50-70 of the ITAA 1997.
Item 1.7 in the table in section 50-5 of the ITAA 1997 provides that an entity will be exempt from income tax if it is a society, association or club established for the encouragement of science and meets the special conditions as set out in section 50-70 of the ITAA 1997.
The Commissioner has previously issued the entity with four favourable private rulings, confirming that it is exempt from income tax.:
The rulings numbers were provided under their relevant case reference numbers with the latest covering the year ending 30 June 2015.
The current request is to cover the next 3 income years to 30 June 2018 and is based on the claim that there has been no change to the entity's constitution, purpose or activities since the last private ruling was granted.
For completeness the applicant resubmitted the following:
Society, association or club
That the entity is an incorporated entity under the Corporations Act 2001 as a public company limited by guarantee and it has a constitution with objects and it undertakes activities in pursuit of those objects, being the encouragement of science
Clause 3.1 of the entity's constitution contains the following objects:
3.1 The Company is established to facilitate the conduct of scientific research in the field of a specified science by its Members and other universities, research institutes and hospitals in Victoria, and has the following objects and purposes:
(a) to enhance scientific and technological capabilities and support scientific research in Victoria in the field of the specified science;
(b) to facilitate research, education and other like programs in the field of the specified science;
(c) to advocate on behalf of Victorian specified science research institutes nationally and internationally;
(d) to arrange funding for Victorian specified science research from Commonwealth and State governments, industry and non-government sources;
(e) to represent its members in respect of the specified science research as an independent body;
(f) to promote Victoria as a leading specified science research hub;
(g) to foster, promote and develop common use of scientific infrastructure and associated services and facilities in the field of the specified science research;
(h) to facilitate major cross-institutional and cross-nodal research projects including without limit by arranging funding to allow such collaborative projects to be undertaken;
(i) to enable the benefits of major cross-institutional and cross-nodal research projects to be shared by the parties collaborating in those projects;
(j) to increase the body of learning, knowledge, skill, expertise and experience in the field of the specified science in Victoria; and
(k) to ensure the benefits of the specified science research are enjoyed by all Victorians.
That entity is not carried on for the purpose of profit or gain to its individual members
That the entity has a Physical presence in Australia and to that extent incurs its expenditure and pursues its objectives principally in Australia.
That the entity's office and staff are located in Australia; and conducts scientific research in the specified field of nominate science in Australia.
Relevant legislative provisions
Income tax Assessment Act 1997 50-1.
Income tax Assessment Act 1997 50-5.
Income Tax Assessment Act 1997 50-70
Reasons for decision
On the basis of the applicant's submission that neither the constitution and purpose, nor its activities have changed since the previous ruling was considered and issued, the ruling period will be extended to cover the next 3 income years to 30 June 2018, confirming, the entity is established for the encouragement of science as described in item 1.7 of the table in section 50-50 of the ITAA 1997and meets the special conditions as described in section 50-70 of the ITAA 1997.