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Edited version of private advice
Authorisation Number: 1051900057348
Date of advice: 17 September 2021
Ruling
Subject: Non-commercial losses - special circumstances - $250,000 or more
Question
Will the Commissioner exercise discretion in paragraph 35-55(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business activity in your calculation of taxable income for the 20XX-XX financial year?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner has granted discretion. It is accepted that there are special circumstances which prevented your business activity from making a tax profit in the 20XX-XX financial year. 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You do not satisfy the less than $250,000 income amount set out in subsection 35-10(2E) of the ITAA 1997 for the 20XX-XX financial year.
Your business activity made a loss in the 20XX-XX financial year due to the impact of the COVID-19 pandemic and associated government restrictions on higher education providers.
You expect to make a tax profit in the 20XX-XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 35
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)
Income Tax Assessment Act 1997 section 35-55
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)