This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
It is important to determine whether the trust is carrying on a business as distinct from pursuing a hobby, sport or recreational activity that does not produce assessable income.
The factors or 'business indicators' various courts and tribunals have taken into account in determining if a business exists for tax purposes include whether the activity:
Last modified: 13 Aug 2014QC 22968
- has actually started
- has a significant commercial purpose or character
- is undertaken with a purpose of profit as well as a prospect of profit
- is carried out in a manner that is characteristic of the industry
- has repetition, regularity or continuity
- is planned, organised and carried on in a business-like manner
- is of a sufficient size, scale and permanency to generate a profit
- is not more properly described as a hobby, recreation or sporting activity.