DGR/tax-exempt endorsed entities should undertake a review of founding documents
By James Patto and Joanne Dunne
A recent case has underlined the importance of a regular review of founding documents to ensure that those documents continue to meet your not-for-profit organisation’s objectives and accurately reflect the activities that the organisation is carrying out.
The Full Federal Court decision in Commissioner of Taxation v Cancer and Bowel Research Association Inc. as trustee for the Cancer and Bowel Research Trust  FCAFC 140 confirmed that when the Australian Taxation Office (ATO) is considering whether to revoke an endorsement for a tax exemption, it must consider the founding documents of the entity concerned in their form at the time it is making that revocation determination.
In the case, (which was an appeal by the Commissioner from the decision in the Administrative Appeals Tribunal reported at  AATA 336), the Full Federal Court confirmed that the ATO was not able to revoke the endorsement based on past events or events that were no longer subsisting. Rather, it had to first make a revocation decision considering the facts and documents in existence at the time the revocation decision was being considered…
If you are registered and logged in to the site, click on the link below to read the rest of the Minter Ellison briefing. If not, please register or sign in with your details below.
News from Minter Ellison
Briefings from Minter Ellison
After launching the Shanghai pilot free-trade zone nine months ago, the Shanghai government has released the 2014 Negative List.
The Federal Circuit Court of Australia imposed fines on a company totalling AUD313,500 for sham contracting and related contraventions of the Fair Work Act 2009.