Commissioner of Taxation v Word Investments Limited [2007] FCAFC 171

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Word Investments Limited [2007] FCAFC 171

TAX – income tax – body seeking endorsement as a charitable institution – whether body instituted to promote or advance a charitable purpose – body seeking endorsement conducted profitable commercial activities and directed profits towards advancement of religion – necessity to examine the purpose of the body's formation, its constitution and activities – importance of subjective motivations of directors – whether body pursued its objectives principally in Australia – profits donated for overseas evangelisation

WORDS AND PHRASES – "charitable institution", "pursues its objectives"

Administrative Appeals Tribunal Act 1975 (Cth) s 43 Income Tax Assessment Act 1936 (Cth) s 23 Income Tax Assessment Act 1997 (Cth) ss 50-5, 50-50, 50-105, 50-110, 50-115, 50-130 Judiciary Act 1903 (Cth) Tax Laws Amendment (2004 Measures No 1) Act 2004 (Cth) item 45 to sch 10 Taxation Administration Act 1953 (Cth) ss 426-30, 426-55 Statute of Elizabeth

Central Bayside General Practice Association Ltd v Commissioner of State Revenue (2006) 228 CLR 168 followed Chesterman v Federal Commissioner of Taxation (1923) 32 CLR 362 referred to Chesterman v Federal Commissioner of Taxation [1926] AC 128 referred to Christian Enterprises Ltd v Commissioner of Land Tax (1968) 72 SR (NSW) 90 followed Commissioner for the Australian Capital Territory Revenue Collections v Council of the Dominican Sisters of Australia (1991) 101 ALR 417 cited Commissioner of Inland Revenue v Carey's (Petone and Miramar) Limited [1963] NZLR 450 approved Commissioners for Special Purposes of Income Tax v Pemsel [1891] AC 531 followed Cotman v Brougham [1918] AC 514 cited Cronulla Sutherland Leagues Club Limited v Commissioner of Taxation (1990) 23 FCR 82 followed Dunne v Byrne [1912] AC 407 distinguished Farah Constructions Pty Limited v Say-Dee Pty Limited (2007) 236 ALR 209 cited Glebe Administration Board v Commissioner of Pay-Roll Tax (1987) 10 NSWLR 352 distinguished Guaranty Trust Company of Canada in re the will of Dorothy Elgin Towle v Minister of National Revenue [1967] SCR 133 considered Hester v Commissioner of Inland Revenue [2005] 2 NZLR 172 cited Incorporated Council of Law Reporting for England & Wales v Attorney-General [1972] Ch 73 distinguished Incorporated Council of Law Reporting of the State of Queensland v Commissioner of Taxation (1971) 125 CLR 659 distinguished Inland Revenue Commissioners v Helen Slater Charitable Trust Ltd [1982] 1 Ch 49 referred to McGarvie Smith Institute v Campbelltown Municipal Council [1965] NSWR 1641 cited Nunawading Shire v Adult Deaf and Dumb Society of Victoria (1921) 29 CLR 98 explained Re Introductions Ltd [1970] Ch 199 cited Re Smith (Deceased) [1954] 1 SASR 151 distinguished Re Tennant [1996] 2 NZLR 633 cited Re Tivoli Freeholds Ltd [1972] VR 445 cited Re Wakim (1999) 198 CLR 511 followed Roman Catholic Archbishop of Melbourne v Lawlor (1934) 51 CLR 1 distinguished Royal Australasian College of Surgeons v The Federal Commissioner of Taxation (1943) 68 CLR 436 considered Salvation Army (Victoria) Property Trust v Shire of Fern Tree Gully (1952) 85 CLR 159 distinguished Scottish Burial Reform and Cremation Society Ltd v Glasgow City Corporation [1968] AC 138 distinguished Shi v Migration Agents Registration Authority (2007) 158 FCR 525 cited Theosophical Foundation v Commissioner of Land Tax (1965) 82 WN (Pt 1) (NSW) 545 explained Theosophical Foundation Pty Limited v Commissioner of Land Tax (1966) 67 SR (NSW) 70 explained Vancouver Society of Immigrant & Visible Minority Women v Minister of National Revenue [1999] 1 SCR 10 considered Ford HAJ Principles of Company Law (2nd Ed 1978)