VSPORT3010 - Key court cases dealing with the sporting exemption: Kennemer Golf and Country Club V Staatssecretaris van Financi毛n (Case C-174/00)
Kennemer was a Dutch ECJ case concerned with the meaning of 바카라 사이트渘on-profit making바카라 사이트� under Article 13A(1)(m) of the EC Sixth Directive which became Article 132(1)(m) of Directive 2006/112. The Dutch court ruled that the golf club was aiming to make a profit and thus did not qualify for exemption. The club appealed and the case was referred to the ECJ, which held that Article 13A(1)(m) should be interpreted as meaning that an organisation may be categorised as 바카라 사이트渘on-profit-making바카라 사이트� even if it systematically seeks to achieve surpluses which it then uses for the purposes of the provision of its services.
The Advocate General바카라 사이트檚 explained the test in his Opinion in the case at paragraph 47, which read:
47. When assessing those aims (whether an organisation is non-profit-making), therefore, it is necessary but not sufficient to look at the organisation바카라 사이트檚 express objects as set out in its statutes. It is also necessary however to examine whether the aim of making and distributing profit can be deduced from the way in which it operates in practice. And in that context it is not enough to look simply for an overt distribution of profits in the form of, say, a direct return on the investment represented by contributions to the organisation바카라 사이트檚 assets. Such distribution might also, at least in some circumstances, take the form of unusually high remuneration for employees, redeemable rights to increasingly valuable assets, the award of supply contracts to members, whether or not at prices higher than the market rate, or the organisation of sporting 바카라 사이트榗ompetitions바카라 사이트� in which all the members won prizes. No doubt further methods of covert distribution can be devised.
Although the UK has left the EU, HMRC continues to apply this guidance to the meaning to the term 바카라 사이트渘on-profit making바카라 사이트�. Officers should therefore consider whether this test is met in addition to the test of commercial influence in the Value Added Tax (Sport, Sports Competitions and Physical Education) Order 1999 (the 바카라 사이트楽ports Order바카라 사이트�).