Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9 - Co-operative and mutual companies  

SECTION 117   CO-OPERATIVE COMPANIES  

117(1)   [``co-operative company'']  

In this Division, ``co-operative company'' means a company, not being a friendly society dispensary, the rules of which limit the number of shares which may be held by, or by and on behalf of, any one shareholder, and prohibit the quotation of the shares for sale or purchase at any stock exchange or in any other public manner whatever, and includes a company, not being a friendly society dispensary, which has no share capital, and which in either case is established for the purpose of carrying on any business having as its primary object or objects one or more of the following:

(a) the acquisition of commodities or animals for disposal or distribution among its shareholders;

(b) the acquisition of commodities or animals from its shareholders for disposal or distribution;

(c) the storage, marketing, packing or processing of commodities of its shareholders;

(d) the rendering of services to its shareholders;

(e) the obtaining of funds from its shareholders for the purpose of making loans to its shareholders to enable them to acquire land or buildings to be used for the purpose of residence or of residence and business.

117(2)   [Approved credit union not co-operative company]  

A company is not a co-operative company within the meaning of this Division in relation to a year of income if the company is, for the purposes of section 23G , an approved credit union in relation to that year of income.

117(3)   [When subsection (2) not applicable]  

Subsection (2) does not apply to a credit union in relation to a year of income if:

(a) the credit union is a recognised medium credit union in relation to the year of income; or

(b) the credit union is a recognised large credit union in relation to the year of income.