| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012854772211
Date of advice: 5 August 2015
Ruling
Subject: Farm management deposits
Question
Will the Commissioner accept the farm management deposits as having been made during the 2014-15 financial year?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2015.
The scheme commences on
1 July 2014
Relevant facts and circumstances
During the 2014-15 income year you, arranged for farm management deposits (FMDs) to be made.
You received notification that the deposits for the FMDs were received on during the 2014-15 income year.
However, the funds were not withdrawn from the source bank account until the 2015-16 financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 393-5
Reasons for decision
Subsection 393-5(1) of the Income Tax Assessment Act 1997 allows an individual taxpayer to deduct the amount of a farm management deposit which they make for during an income year provided certain conditions are met.
In your case we accept that the deposits into the FMDs were made during the 2014-15 financial year.
Your instructions to establish the FMD's were made during the 2014-15 income year. Although the physical transfer of funds did not occur until the 2015-16 income year given that the financial institution have recorded in their accounts that the FMD deposits occurred during the 2014-15 income year, the Commissioner will accept the date the deposit was made during the 2014-15 income year.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
