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Edited version of private advice
Authorisation Number: 1051525751394
Date of advice: 1 June 2019
Ruling
Subject: Income tax - Commissioners discretion - non-commercial losses
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your business activity in the calculation of your taxable income for the 20XX to 20XX financial years?
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 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 periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.
You operate a primary production business activity and have done since the 20XX financial year.
The activity has been affected by special circumstances in the 20XX to 20XX financial years causing it to make a loss.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 35-55