Private ruling: Am I in business?
Date of advice: 15 October 2018
Published: December 2018
Ruling period: Year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you carrying on a business? | A1: Yes The Commissioner accepts that you are carrying on a business as you meet the relevant factors contained in Taxation Ruling TR 97/11. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au.

Relevant facts and circumstances: You have been carrying on a business since 19XX. From 19XX to 20XX you ran the business with your spouse on a property which you and your spouse owned. From 20XX the business was carried on another property. This property was owned solely by you. In 20XX your spouse passed away and you continued to run the business as a sole trader. All business income has been reported in income tax returns. Business financial statements have been prepared for all years of operating the business. In peak periods, annual income from the business has reached approximately $X. You have carried on and continue to carry on all business activities in a thorough, organised and businesslike manner. You spend your days attending to the business activity on a substantially full-time basis. You continue to hold and maintain all required licences and registrations necessary for significant business operations. You have provided a summary of your business history, plans, approach, methods and current levels of activity that has been considered as part of this private ruling. You are continuing to operate the business at a reasonable capacity, and at time throughout the year you are near full capacity for activities similar to yours. You are now X years old. You are in good health generally and you remain directly engaged in all ordinary physical aspects of the business. You are contemplating selling the business and retiring soon. The 20XX-XX financial year is likely to be your final year of business.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 995-1 | Income Tax Assessment Act 1997 subparagraph 152-10(1)(c)(i)