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Edited version of your written advice
Authorisation Number: 1051294835474
Date of advice: 17 October 2017
Ruling
Subject: Non-commercial losses
Question
Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business activity in your calculation of taxable income for the 20BB-CC to 20DD-EE financial years?
Answer
Yes
Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry.
Therefore, the Commissioner will exercise the discretion in the 20BB-CC to 20DD-EE financial years.
This ruling applies for the following period(s)
Year ended 30 June 20CC
Year ending 30 June 20DD
Year ending 30 June 20EE
The scheme commences on
1 July 20BB
Relevant facts and circumstances
You are carrying on a business which commenced in January 20AA.
Your income for non-commercial loss purposes for the financial years 20BB-CC to 20DD-EE is more than $250,000.
You have provided independent evidence that attests to a commercially viable period of two to four years for your industry.
You state the business will make a profit in the 20EE-FF financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 35-10(1)
Income Tax Assessment Act 1997 subsection 35-10(2)
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 paragraph 35-55(1)(c)
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