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This edited version has been archived due to the length of time since original publication.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: 1051470983791

Date of advice: 8 January 2019

Ruling

Subject: Non-commercial losses and the Commissioner’s discretion for special circumstances

Question

Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 20XX-XX financial year?

Answer

Yes.

Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.

You carry on a business in a partnership of livestock farming.

You submit that you were affected by special circumstances in the 20XX-XX financial year.

Due to drought the business has incurred additional fodder costs to feed the livestock.

Also, the business incurred additional veterinary fees due to your livestock becoming severely infected by parasites.

XXX livestock died and over XXXX were affected and as a result were sold prematurely and grossly under value.

The business spent over $XXX,XXX on replenishing the livestock numbers.

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)(a)


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