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Edited version of your written advice
Authorisation Number: 1051308756700
Date of advice: 15 November 2017
Ruling
Subject: Commissioner's discretion for non-commercial losses
Question 1
Is the Commissioner satisfied that under paragraph 35-55(1)(a) it would be unreasonable to apply the loss deferral rule in subsection 35-10(2) to the applicant’s business activity in financial year 20XX?
Answer
Yes.
Having considered your circumstances and the relevant factors, the Commissioner is satisfied that it would be unreasonable for the loss deferral rules in subsection 35-10(2) of the ITAA 1997 to apply to the applicant’s business activity in financial year 20XX. Further information on the relevant factors and non-commercial losses generally can be found on our website ato.gov.au and entering Quick Code QC33774 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ending 30 June 20XX.
The scheme commences on:
1 July 20XX.
Relevant facts and circumstances
The business activity of trading commenced in financial year 20XX.
The applicant did not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
The applicant satisfied the other assets test set out in section 35-45 of the ITAA 1997.
The trading activity ceased on 20XX.
Up to the date that the business activity ceased, it had incurred net tax losses.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 35-10
Income Tax Assessment Act 1997 section 35-45 and
Income Tax Assessment Act 1997 section 35-55.
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