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Edited version of private advice
Authorisation Number: 1052120395855
Date of advice: 23 May 2023
Ruling
Subject: Affiliate relationship
Question
Is your sibling your affiliate under section 328-130 of the Income Tax Assessment Act 1997 (ITAA 1997) for the period that Properties were used in business?
Answer
Yes. On the basis of your close family relationship, the business dependency on the use of the Properties, the lack of formal arrangements in regard to the use of the Properties and the relevant consultation around business decisions, it is reasonably expected that your sibling would act in accordance with your wishes, in relation to your business affairs.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You acquired joint ownership of the Properties with your siblings approximately 20 years ago upon the death or your parent.
Your sibling carries on a primary production business on the Properties.
There is no formal agreement between you and your sibling, and you do not receive any rent for the use of your share of the Properties.
You are involved in significant decisions in relation to the Properties and your sibling's business.
You and your siblings have made a joint decision to sell the Properties.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 328-130