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Edited version of your written advice
Authorisation Number: 1051356218846
Date of advice: 29 March 2018
Ruling
Subject: Income tax exempt entity - society, association or club established for the encouragement of science
Question
Is the 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 and meets the special conditions described in section 50-70 of the ITAA 1997?
Answer
Yes
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Relevant facts and circumstances
The Entity is a public company limited by guarantee and incorporated under the Corporations Act 2001. The Entity has applied for an extension to a private binding ruling it received previously which confirmed it was 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 and meets the special conditions 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.
The Entity has submitted that neither its constitution nor activities have changed since the last ruling was issued.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 50-1
Income Tax Assessment Act 1997 Section 50-5
Income Tax Assessment Act 1997 Section 50-70
Reasons for decision
In previous years the Commissioner issued several private rulings which confirmed that the ordinary and statutory income of the Entity was exempt from income tax under section 50-1 of the ITAA 1997 on the basis that it was an organisation as described in item 1.7 of the table in section 50-5 of the ITAA 1997 and met the special conditions described in section 50-70 of the ITAA 1997.
As neither the constitution nor the activities of the Entity have changed since the previous ruling, the ruling period will be extended for another three years.