The Commissioner of Taxation of the Commonwealth of Australia v Australian Airlines Ltd [1996] FCA 935

CATCHWORDS SALES TAX - exemptions - whether flight training centre within Item 63A, First Schedule, Sales Tax (Exemptions and Classifications) Act 1935 - whether flight training centre a 'school conducted by an organisation not carried on for the profit of an individual' - meaning of the term 'school' - the word 'school' should be given its ordinary and natural meaning: a place where people come together for the purpose of being instructed in an area of knowledge or activity - a school may be conducted by a profit-making organization - derivation of profit by the conduct of a school should not bar enjoyment of exemption if profit gained not for any one or more individuals, but for an unidentified plurality of persons. Civil Aviation Act 1988 Sales Tax ( Exemptions and Classifications) Act 1935 Cromer Golf Club Limited v Downs (1973) 47 ALJR 219 Genex Corporation Pty Limited v Commonwealth of Australia (1991) 30 FCR 193 Lawrence v South County Freeholds Limited [1939] 1 Ch 656 Federal Commissioner of Taxation v Leeuwin Sail Training Foundation Limited (1996) 96 ATC 4,721 THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v AUSTRALIAN AIRLINES LIMITED VG 220 of 1996 LOCKHART, SUNDBERG and MERKEL JJ. 26 NOVEMBER 1996 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA) ) VICTORIA DISTRICT REGISTRY ) No. VG 220 of 1996 ) GENERAL DIVISION ) ON APPEAL FROM A JUDGE OF THE FEDERAL COURT OF AUSTRALIA BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Appellant AND: AUSTRALIAN AIRLINES LIMITED Respondent COURT: LOCKHART, SUNDBERG and MERKEL JJ. DATE: 26 NOVEMBER 1996 PLACE: MELBOURNE MINUTE OF ORDERS THE COURT ORDERS THAT: 1. The appeal be dismissed. 2. The appellant pay the costs of the respondent of the appeal. NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.