Private ruling: Entitlement to an Australian Business Number
Published: December 2013
Ruling period: 01/07/2012 to 30/06/2013
Date scheme commenced: 01/07/2012

Ruling: Q1: Is your partnership entitled to an Australian Business Number (ABN), backdated to the commencement of your business operations? | A1: Yes. Provided the partnership was carrying on an enterprise, then it is entitled to ABN from the commencement date of its business operations.

Relevant facts and circumstances: You are a partner in a partnership The partnership operated a business The partnership did not have an ABN Your original tax agent mistakenly applied for an ABN in your spouse's name (the other partner) rather than for the partnership. Whilst operating the business you believed that it was the partnership that had the registered ABN and whilst quoting and using your spouse's ABN, you believed it was the partnership ABN you were quoting. Any invoices that were issued contained the partnership name. You have since changed tax agents and have realised that the ABN that you were quoting was that of your spouse's and not of the partnership. You have requested advice as to whether the partnership can register for an ABN and backdate the start date of the ABN to when it commenced operations of the business.

Relevant legislative provisions: Section 8 of the A New Tax System (Australian Business Number) Act 1999

Reasons for decision: Summary: Subsection 8(1) of the A New Tax System (Australian Business Number) Act 1999 (the ABN Act) provides that you are entitled to have an Australian Business Number (ABN) if you are carrying on an enterprise in Australia. Subsection 25(1) if the ABN Act provides that the Registrar should enter the following information in the Australian Business Register; · The entity's name · The entity's ABN · The date of effect of the registration The date of effect of the registration should be the date that the entity commenced business operations. That is, the date the entity commenced to operate an enterprise and was therefore entitled to an ABN in accordance with section 8 of the ABN Act. Provided that the partnership is carrying on an enterprise in Australia, it will be entitled to an ABN and the date of effect of the registration is the date it commenced to operate the enterprise.