The WA Chamber of Commerce and Industry (the taxpayer) has been successful before the WA State Administrative Tribunal in seeking a payroll tax exemption, on the basis that it came within the definition of a charitable body or organisation for the purposes of the Pay-roll Tax Assessment Act 2002 (WA).
The Commissioner had refused the exemption arguing that the main (or at least equally important) purpose for which the taxpayer carried on its operations was to provide services to its members rather than any purpose to the benefit of the public generally. However, after examining the constitution of the taxpayer, the activities it carried on, as well as taking into account the general law definition of charitable purpose, the Tribunal held the taxpayer was carried on mainly for a purpose beneficial to the community. It concluded the taxpayer’s primary object was the “promotion of trade commerce and industry and the development generally”.
Accordingly, the Tribunal held the taxpayer was a charitable body and entitled to the exemption. The Tribunal also held the taxpayer was entitled to refund of tax paid for the whole period for which the exemption was sought (ie include a 5-year period before the application for the exemption was sought in October 2009).
(Chamber of Commerce v Industry of WA (Inc) v Comr of State Revenue [2012] WASAT 146, WA State Administrative Tribunal, Chanel P, 18 July 2012.)
[LTN 141, 24/7]