1051236968894 | Legal database

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This edited version has been archived due to the length of time since original publication.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.

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Edited version of your written advice

Authorisation Number: 1051236968894

Date of advice: 15 June 2017

Ruling

Subject: Non-commercial business losses and grouping similar business activities

Question 1

Can you group your partnership and sole trader business activities for the purpose of subsection 35-10(3) of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

This ruling applies for the following periods:

Year ending 30 June 2017

The scheme commences on:

1 July 2015

Relevant facts and circumstances

You operate several pharmacies under a partnership arrangement, and another pharmacy as a sole trader.

The sole trader business commenced in the 2014-15 financial year, and has been operating at a loss due to construction delays at the premises it was meant to operate in.

The net financial position of the pharmacies is profitable for the 2015-16 and 2016-17 financial years.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 35-10(3).

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