| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051440821577
Date of advice: 15 October 2018
Ruling
Subject: Am I in business?
Question
Are you carrying on a business?
Answer
Yes
The Commissioner accepts that you are carrying on a business as you meet the relevant factors contained in Taxation Ruling TR 97/11. Further information about carrying on a business can be found by searching 'QC 31733' 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 have been carrying on a business since 19XX.
From 19XX to 20XX you ran the business with your spouse on a property which you and your spouse owned.
From 20XX the business was carried on another property. This property was owned solely by you.
In 20XX your spouse passed away and you continued to run the business as a sole trader.
All business income has been reported in income tax returns.
Business financial statements have been prepared for all years of operating the business.
In peak periods, annual income from the business has reached approximately $X.
You have carried on and continue to carry on all business activities in a thorough, organised and businesslike manner.
You spend your days attending to the business activity on a substantially full-time basis.
You continue to hold and maintain all required licences and registrations necessary for significant business operations.
You have provided a summary of your business history, plans, approach, methods and current levels of activity that has been considered as part of this private ruling.
You are continuing to operate the business at a reasonable capacity, and at time throughout the year you are near full capacity for activities similar to yours.
You are now X years old. You are in good health generally and you remain directly engaged in all ordinary physical aspects of the business.
You are contemplating selling the business and retiring soon. The 20XX-XX financial year is likely to be your final year of business.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 995-1
Income Tax Assessment Act 1997 subparagraph 152-10(1)(c)(i)