Product Ruling

PR 1999/25A - Addendum

Income tax: Tasmanian Forest Trust No. 7 Project

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FOI status:

may be released

Addendum

At paragraph 12, delete:

letter from FET dated 1 April 1999.

and replace with:

letter from FET dated 1 April 1999 and facsimile messages and attachments from the Applicant's Representative dated 14 February 2001 and 1 June 2001.

Add to the Ruling part of the Product Ruling after paragraph 34:

Division 35 - deferral of losses from non-commercial business activities

Section 35-55 - Commissioner's discretion

34.1 For a Grower who is an individual and who entered the Project on or after 19 May 1999 and prior to any withdrawal of this Product Ruling, the rule in section 35-10 may apply to the business activity comprised by their involvement in this Project. Under paragraph 35-55(1)(b) the Commissioner has decided for the income years ended 30 June 2001 to 30 June 2007 that the rule in section 35-10 does not apply to this business activity provided that the Project has been, and continues to be, carried on in a manner that is not materially different to the arrangement described in this Ruling.

34.2 This exercise of the discretion in subsection 35-55(1) will not be required where for any year in question:

•

a Grower's business activity satisfies one of the objective tests in sections 35-30, 35-35, 35-40 or 35-45; or

•

the 'Exception' in subsection 35-10(4) applies.

34.3 Where either the Grower's business activity satisfies one of the objective tests, the discretion in subsection 35-55(1) is exercised, or the Exception in subsection 35-10(4) applies, section 35-10 will not apply. This means that a Grower will not be required to defer any excess of deductions attributable to their business activity in excess of any assessable income from that activity, i.e., any 'loss' from that activity, to a later year. Instead, this 'loss' can be offset against other assessable income for the year in which it arises.

Commissioner of Taxation
20 June 2001

References

ATO references:
NO T2000/13746