Private ruling: Non-commercial loss - special circumstances
Date of advice: 15 April 2021
Published: June 2021
Ruling period: Financial year ending 30 June 20xx | Financial year ending 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 20xx-xx and 20xx-xx financial years? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which prevented you from passing a test. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You operate a sole trader business that has been affected by special circumstances outside of your control (COVID-19). Your business had passed the income test in the financial year prior to the ruling periods. Your income for non-commercial loss purposes is less than $250,000 for each of the ruling periods.

Relevant legislative provisions: Section 35-10 of the Income Tax Assessment Act 1997 | Section 35-55 of the Income Tax Assessment Act 1997