ATO’s view of Wentworth District Capital decision

The ATO has published a Decision Impact Statement on how it will administratively treat the Full Federal Court decision regarding the tax treatment of the Bendigo Bank franchise set up by Wentworth District Capital Ltd (discussed here).

The ATO’s view is that while it accepts that the facilitation of certain commercial services in certain circumstances is capable of amounting to community service purposes within the meaning of Item 2.1 of section 50-10 of ITAA 1997 as determined by the Full Federal Court, whether that will be so in any particular case is a question of fact and circumstances. In the ATO’s view the court did not go so far as to hold that every community bank will qualify as providing a community service.

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