*FCT v Bargwanna & Anor as Trustees of the Kalos Metron Charitable Trust – trust lost its exemption as fund not applied for purposes it was established [46]

The ATO on Thur 11.7.2013, released a Decision Impact Statement on the High Court’s decision in FCT v Bargwanna & Anor as Trustees of the Kalos Metron Charitable Trust (2012) 82 ATR 273.

In that case, the High Court unanimously allowed the Commissioner’s appeal and held that the taxpayer trustees’ administration of the Kalos Metron Charitable Trust had not complied with the requirement for tax exemption under s 50-60 of the ITAA 1997 because the fund was not “applied for the purposes for which it was established”. Broadly, the ATO said the High Court’s decision was consistent with its view.

[LTN 132, 11/7/13]