| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051436827287
Date of advice: 3 October 2018
Ruling
Subject: Non-commercial losses and the Commissioner’s discretion for special circumstances
Question
Will the Commissioner exercise the discretion in to allow you to include any losses from your business in the calculation of your taxable income for the 2017-18 financial year?
Answer
Yes.
Having regard to your full circumstances, the Commissioner has granted his discretion as 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 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
You carry on a business.
You commenced business operations in the 20XX-XX financial year.
You submit that you were affected by special circumstances in the 20XX-XX financial year.
You signed a premise lease on X May 20XX for your business. At the end of May 20XX you were verbally notified by your landlord that the area located directly out the front of your premise entry was going to be redeveloped.
As a result of the redevelopment, you were not able to start advertising as you were not able to communicate a definite timeline to people looking to access your business.
The premise fitout was completed by X June 20XX and you would have been ready to trade except the redevelopment was preventing people from accessing your business.
The redevelopment is still ongoing and is preventing safe access into your business.
You will return a profit in the 20XX-XX 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)(a)