Note 5: Income tax expense
The Northern Land Council (NLC) has been approved as a Public Benevolent Institution. The services of the Council are provided on a ‘not-for-profit’ basis. Therefore, the NLC is not subject to the Australian Government’s Competitive Neutrality policy.
The NLC is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST).
Revenues, expenses and assets are recognised net of the amount of the GST except:
a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
b) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Northern Land Council
The NLC does not provide services on a for-profit basis. Therefore, the NLC is not required to make Australian Income Tax Equivalent payments to the Government.
North Australia Aboriginal Corporation (NAAC) is exempt from tax under the provisions of the Income Tax Assessment Act 1997 Subdivision 50-B. This situation will continue so long as the funds of the Corporation are being applied for the purpose for which it was established.
Northern Australian Aboriginal Charitable Trust (NAACT) is exempt from tax under the provisions of the Income Tax Assessment Act 1997 Subdivision 50-B. This situation will continue so long as the funds of the trust are being applied for the purpose for which it was established.
Northern Aboriginal Investment Corporation Pty Ltd (NAIC) was incorporated in Australia in 1987 and is the corporate trustee for the Northern Australian Aboriginal Charitable Trust (NAACT). The trustee company has no other assets or liabilities and has no operations other than in its capacity as trustee. Therefore, this entity is not subject to income tax.
Other subsidiaries that have not been consolidated as part of the Group are not exempt from taxation under the provision of the Income Tax Assessment Act 1997.