Draft Taxation Determination
TD 93/D56
Income tax: is a taxpayer who carries on business as a livesheep exporter carrying on a business of primary production?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 93/56.
FOI status:
draft only - for commentPreamble
| Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO. |
1. No. The business of a 'livesheep exporter' is not a business of 'primary production' as defined in subsection 6(1) of the Income Tax Assessment Act 1936.
2. The purchase, transportation, shearing, handling, temporary holding and preparation in feedlots of sheep for export, is not considered to be a business of primary production when conducted by a livesheep exporter, as distinct from a farmer or grazier carrying on traditional farming operations.
3. Any production activity which may occur, is incidental to the operations and insufficient to bring them within the definition of primary production.
4. Even where the operations are conducted on part of a farming property, the business still does not become one of primary production; nor is that part of the property used for the purpose of agricultural or pastoral pursuits.
5. It follows that the special concessions allowable to primary producers are not allowable to 'livesheep exporters'. For example, depreciation on structural improvements under the provisions of paragraph 54(2)(b), section 57AE and section 57AH, and also deductions for certain expenditure associated with land, under the provisions of section 75A, section 75B and section 75D, are not allowable.
Commissioner of Taxation
4 March 1993