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Edited version of private advice
Authorisation Number: 1051620770962
Date of advice: 16 December 2019
Ruling
Subject: Income tax - farm management deposit
Question
Are you entitled to a deduction in the 20XX-XX financial year for the full amount of your Deposit under Division 393 of Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. After reviewing the documentation it is considered that there was an agreement between you and the bank that met the conditions of a 'farm management deposit' and all the relevant requirements outlined in the table in section 393-35 of the ITAA 1997 were satisfied. The Commissioner will allow a deduction in the 20XX-20XX for the amount of the deposit.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
You applied for a FMD in your name.
You are an individual carrying on a primary production business in Australia with your taxable non-primary production income being less than $100,000. You have not been declared bankrupt.
Due to a bank error the deposit was placed into a different account.
The bank rectified the error and back dated the account.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 393-5
Income Tax Assessment Act 1997 Section 393-20
Income Tax Assessment Act 1997 Section 393-35