| Disclaimer 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 private advice
Authorisation Number: 1051798181795
Date of advice: 22 January 2021
Ruling
Subject: Commissioner's discretion for non-commercial business 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 financial year?
Answer
Yes
Based on the evidence you have provided, that your business was affected by special circumstances beyond your control, the Commissioner will exercise his discretion to allow your business loss in the 20XX financial year to be deducted against other income and not require the business loss to be deferred. For more information on non-commercial losses, please visit our website ato.gov.au and enter quick code "QC 33774" in the search area at the top of the page.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You commenced business partway through the 20XX financial year as a sole trader
Your income for non-commercial loss purposes was greater than $250,000 in the 20XX financial year.
Your business was affected by special circumstances outside your control (COVID-19).
You predict you will make an assessable profit in year 2.
You have provided several supporting documents.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 35
Income Tax Assessment Act 1997 section 35-1
Income Tax Assessment Act 1997 subsection 35-10(2)
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 section 35-55
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)