Miscellaneous 2013

Charities: Commercial activity, competitive neutrality and tax

Source: The Tax Specialist Journal Article

Published Date: 1 Feb 2013


This article looks at the proposal to impose tax on the commercial activities of charities. The proposal arose following the 2008 High Court decision in FCT v Word Investments Ltd where it was held that an entity that engaged in commercial activities in aid of its religious charitable purpose was a charity (in that case, a charitable institution). The stated rationale for the proposal to tax some commercial activities of charities includes concerns about unfair competition.

This article considers this and other rationales to see whether they can be justified from a policy perspective.

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Miscellaneous 2013

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