We’ve released a decision impact statement about the decision handed down by the Full Federal Court (the Court) in The Buddhist Society of Western Australia Inc v Commissioner of Taxation (No 2) on 4 November 2021.
In this case, the Court considered the eligibility of a school building fund’s application for deductible gift recipient (DGR) status and considered the interpretation of:
- the ordinary meaning of school
- how to determine whether a building is being used as a school.
In response to the decision handed down by the Court, when determining whether:
- there is a school – we will consider the guidance provided by the Court on the ordinary meaning of school
- a building is ‘used, or to be used as a school’ – we will consider the overall purpose (or purposes) for which the building was ‘established and maintained’ and the activities which support its purpose
- the ‘activities’ include a mixture of school and non-school activities – we will consider the connection of the activities, and the extent to which both activities contribute to the purpose (or purposes) for which the building was ‘established and maintained’.
We're reviewing the impact of this decision on related advice and guidance products including Taxation Ruling TR 2013/2 Income tax: school or college building funds.
If you would like to seek a review of a previous decision we’ve made about your entity’s DGR status as a school building fund, send an email to ATOEndorsements@ato.gov.au.
Read about the Federal Court’s decision in The Buddhist Society of Western Australia Inc v Commissioner of Taxation.