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Edited version of your written advice
Authorisation Number: 1051505436238
Date of advice: 11 April 2019
Ruling
Subject: Grouping similar business activities for non-commercial loss purposes
Question
Is your sole trader outlet business activity and your partnership outlet business activity considered to be of a similar kind for non-commercial loss purposes?
Answer
Yes.
Having considered your circumstances your two direct chemist outlet business activities satisfy the relevant factors in identifying similar business activities in Taxation Ruling TR 2001/14. Further information on the similar business activities for non-commercial business purposes can be found by searching 'QC 55241' on ato.gov.au
This ruling applies for the following period:
● Financial year ending 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
During the 2017-18 financial year you operated two outlet business activities.
Both activities are operated under the same retail banner, the products sold and the services provided are identical, and both are conducted in the same state.
You operated the outlet ‘A’ as a sole trader for all of the 2017-18 financial year and the outlet ‘B’ as a sole trader for only part of the 2017-18 financial year. For the remainder of the year you operated outlet ‘B’ under the partnership arrangement.
During the 2017-18 financial year outlet ‘A’ made a loss. However outlet ‘B’ was profitable under both the sole trader and partnership arrangements. The overall position of the two business activities was a loss.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 35
Income Tax Assessment Act 1997 Section 35-10(3)