Private ruling: Am I in Business?
Date of advice: 17 September 2018
Published: October 2018
Ruling period: Period end date 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you carrying on a business of martial arts? | A1: No It is accepted that you do not meet the relevant factors contained in Taxation Ruling TR 97/11. In particular, no profit has been made since you started conducting the martial arts activity and the about of time spent is relevantly low. It is considered to be more of a hobby that you undertake. Further information about carrying on a business can be found by searching QC 31733 on ato.gov.au.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The company has one shareholder who is also the only director. The director teaches martial arts activities for the company. The director teaches face to face during school terms one night a week for one hour and Saturday mornings. The company rent premises to conduct their activity. The director spends about 2 hours a week on administration. The director maintains a community website. Approximately XX students attend the activity. The director has a full time job in an unrelated field. The director is not paid a salary or wage from the company. The company has not made a profit for over 10 years. The company does not have a prospect of profit in the future.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 995-1