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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Details
- Published By: Ann O’Connell, Fiona Martin CTA
- Published On:1 Feb 2013
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