| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051520913281
Date of advice: 27 May 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 2018-19 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 prevented you from passing a test. 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 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You satisfy the income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.
You operate a primary production business.
You employ a number of full-time staff.
The region in which your farm is located has been experiencing a severe drought and a total of only 32mm of rain has fallen on the farm over the past XXX days.
You met the assessable income test in the 2017-18 financial year. You have provided figures which show that but for the special circumstances you would have met the assessable income test in the 2018-19 financial year. You expect to meet the assessable income test in the 2019-20 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) and
Income Tax Assessment Act 1997 - Paragraph 35-55(1)(a).