Private ruling: Am in in business of share trading
Date of advice: 20 December 2021
Published: March 2022
Ruling period: 1 July 20XX to 30 June 20XX | 1 July 20XX to 30 June 20XX | 1 July 20XX to 30 June 20XX | 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you carrying on a business of share trading? | A1: Yes. Weighing up the relevant facts and circumstances it is considered that you were engaged in a business of a share trading business from 1 July 20XX to 30 June 20XX as your activity had significant commercial purpose and character that would be expected of a share trading business. You can change from conducting an activity as a business to that of being an investor and vice-versa over time as your level of activity changes. You should evaluate your level of activity on a regular basis to see whether you are investing or carrying on a business.

Relevant facts and circumstances: You commenced your share trading activity through a broker in 20XX You conduct your share trading activity as a sole trader. You conducted your share trading activity XX hours a day averaging XX hours per week during the relevant period. You have relevant training and qualifications in the share trading and finance fields. You have a trading strategy that was conducted manually based on market indicators. You also used automated trading using algorithms to assist with trading. You had a significant number of trades in each year and traded on a regular basis.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 8-1