Private ruling: The Commissioner's discretion for non-commercial losses
Date of advice: 20 August 2019
Published: October 2019
Ruling period: Year ended 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 2017-18 financial year? | A1: 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 caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You commenced carrying on a business in the 20XX-YY financial year. You submit that you were affected by special circumstances in the 2017-18 financial year, which resulted in a tax loss. You have provided supporting evidence to substantiate your claim. Due to the nature and uniqueness of a new business arrangement which commenced at the beginning of the 2017-18 financial year, there will be no future tax profits or losses in regards to your business operation.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 35-10(1) | Income Tax Assessment Act 1997 subsection 35-10(2) | Income Tax Assessment Act 1997 subsection 35-10(2E) | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)