Private ruling: Affiliates
Date of advice: 15 July 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are Individual A and Individual B affiliates of each other or of their child Individual C and spouse Individual D or Entity Y, whether under section 328-130 or 152-47 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No, after reviewing the relevant factors and conditions, the Commissioner does not consider Individual A and Individual B to be affiliates of each other or to Individual C and spouse Individual D or Entity Y. The relationship between the parties does not demonstrate they are affiliates. | Q2: Are Individual A and Individual B or their child Individual C and spouse Individual D, affiliates of' Entity X under section 328-130 of the ITAA 1997? | A2: No, after reviewing the relevant factors and conditions, the Commissioner does not consider the individuals to be affiliates of Entity X. The relationship between the parties does not demonstrate they are affiliates.

Relevant facts and circumstances: Individual A and Individual B own rural properties. Individual A and Individual B are not in business in their individual capacity. They are partners in the primary production partnership, Entity X. Individual A and Individual B's child and spouse, Individual C and Individual D, are also in a primary production partnership, Entity Y. Individual A and Individual B and Entity X do not consult in any way with Individual C and Individual D or Entity Y in respect of business activities. The business affairs are independent of each other. They have separate bank borrowings. They have separate brands, do not operate in a partnership, or concert with each other and retain their own separate approaches to primary production operations.

Relevant legislative provisions: Section 328-130 of the Income Tax Assessment Act 1997 | Section 152-47 of the Income Tax Assessment Act 1997