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Edited version of private advice
Authorisation Number: 1051908356606
Date of advice: 29 November 2021
Ruling
Subject: Commissioner's 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 financial year?
Answer
Yes.
Having regard to your full circumstances, it is acceptable that your business activity was affected by special circumstances outside your control and that these prevented you meeting one of the four tests. Consequently, the Commissioner will exercise his discretion in the <XXXX> financial year.
This ruling applies for the following period:
Financial year ending 30 June 20XX
The scheme commences on:
XX 20XX
Relevant facts and circumstances
You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.
You conduct a business of xxxxxxxx which commenced in the 20XX financial year.
Your business is generated from xxxxxxxx
In the 20XX financial year special circumstances impacted your business activity.
Your business was impacted in the following ways.
• The Government imposed lockdown restricting movement within the State
• You were unable to operate under normal trading conditions due to ongoing Government lockdowns
• The business activity is primarily performed xxxxxxxxxx.
• During lockdown periods you were unable to xxxxxxx
• Your business has previously met the assessable income test.
You intend to make a $XXXXX in assessable income in the 20XX 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)
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)