Private ruling: Commissioner's discretion for non-commercial losses
Date of advice: 15 November 2017
Published: April 2018
Ruling period: Year ending 30 June 20XX.
Date scheme commenced: 1 July 20XX.

Ruling: Q1: Is the Commissioner satisfied that under paragraph 35-55(1)(a) it would be unreasonable to apply the loss deferral rule in subsection 35-10(2) to the applicant’s business activity in financial year 20XX? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is satisfied that it would be unreasonable for the loss deferral rules in subsection 35-10(2) of the ITAA 1997 to apply to the applicant’s business activity in financial year 20XX. Further information on the relevant factors and non-commercial losses generally can be found on our website ato.gov.au and entering Quick Code QC33774 into the search bar at the top right of the page.

Relevant facts and circumstances: The business activity of trading commenced in financial year 20XX. The applicant did not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. The applicant satisfied the other assets test set out in section 35-45 of the ITAA 1997. The trading activity ceased on 20XX. Up to the date that the business activity ceased, it had incurred net tax losses.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 35-10 | Income Tax Assessment Act 1997 section 35-45 and | Income Tax Assessment Act 1997 section 35-55.