Private ruling: Grouping similar business activities for non-commercial loss purposes
Date of advice: 23 June 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your sole trader retail outlet business activity and your partnership retail outlet business activity considered to be of a similar kind for non-commercial loss purposes? | A1: Yes. Having considered your circumstances your two retail outlet business activities satisfy the relevant factors in identifying similar business activities in Taxation Ruling TR 2001/14 . Further information on grouping similar business activities for non-commercial business purposes can be found by searching 'QC 55241' on ato.gov.au

Relevant facts and circumstances: You operated two retail outlets in the year ended 30 June 20XX, starting the year with one as a sole trader and one in a partnership. You sold part of the business you ran as a sole trader and formed a partnership. Both activities operate as retail outlets selling similar products and provide the same services to clients, and both are operated in the same state. Although one of the retail outlets changed names nothing else about the operation changed, it still sold the same products and provided the same services as it did previously. During the year ended 30 June 20XX you made a loss from your sole trader activities; however, your share of the partnership profits exceeded your sole trader losses. The overall position of the activities in the year ended 30 June 20XX is a profit.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35 | Income Tax Assessment Act 1997 section 35-10(3)