North Ryde RSL Community Club Limited v Federal Commissioner of Taxation [2002] FCAFC 74; [2002] FCA 313

North Ryde RSL Community Club Limited v Federal Commissioner of Taxation [2002] FCAFC 74 North Ryde RSL Community Club Limited v Federal Commissioner of Taxation [2002] FCA 313

NOTE: CHANGES TO THE MEDIUM NEUTRAL CITATION (MNC) The Federal Court adopted a new medium neutral citation (FCAFC) for Full Court judgments effective from 1 January 2002. Single Judge judgments will not be affected and will retain the FCA medium neutral citation. The transitional arrangements are as follows: * All Full Court judgments delivered prior to 1 January 2002 will retain the FCA medium neutral citation.

* All Full Court judgments delivered between 1 January 2002 to 30 April 2002 have been assigned parallel medium neutral citations in both the FCA and FCAFC series.

* All Full Court judgments delivered from 1 May 2002 will contain the FCAFC medium neutral citation only.

FEDERAL COURT OF AUSTRALIA

North Ryde RSL Community Club Limited v Federal Commissioner of Taxation [2002] FCA 313

INCOME TAX – whether keno receipts subscribed by club members are subject to the mutuality principle or are trading receipts – whether failure to apply for a private ruling can constitute a failure to take reasonable care to comply with the Income Tax Assessment Act or Regulations

Income Tax Assessment Act 1936 (Cth) s 226G

Fletcher v Income Tax Commissioner [1972] AC 414 – cited Federal Commissioner of Taxation v Australian Music Traders Association (1990) 94 ALR 407 – cited Social Credit Savings and Loans Society Ltd v Federal Commissioner of Taxation (1971) 125 CLR 560 – cited Sydney Water Board Employees' Credit Union v Federal Commissioner of Taxation (1973) 129 CLR 446 – applied Liverpool Corn Trade Association v Monks [1926] 2 KB 110 – cited Revesby Credit Union Co-operative Ltd v Federal Commissioner of Taxation (1965) 112 CLR 564 – cited J B Chandler Investment Co Ltd v Commissioner of Taxation (1993) 47 FCR 588 – cited South Sydney District Rugby League Football Club Ltd v News Ltd (2000) 177 ALR 611 – cited Bohemians Club v Acting Federal Commissioner of Taxation (1918) 24 CLR 334 – cited Royal Automobile Club of Victoria v Federal Commissioner of Taxation [1974] VR 651 – considered Van Rassel v Kroon (1953) 87 CLR 298 – cited Walker v Corboy (1990) 19 NSWLR 382 – cited Hope v Bathurst City Council (1980) 144 CLR 1 – applied NORTH RYDE RSL COMMUNITY CLUB LIMITED V FEDERAL COMMISSIONER OF TAXATION N891 OF 2001 JUDGES: SPENDER, FINN AND MERKEL JJ DATE: 25 MARCH 2002 PLACE: SYDNEY