Taxation Ruling

TR 1997/11A1 - Addendum

Income tax: am I carrying on a business of primary production?

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Ruling TR 97/11 to reflect changes to the law resulting from the repeal of inoperative provisions by the Tax Laws Amendment (Improvements to Self Assessment) Act (No. 2) 2005.

TR 97/11 is amended as follows:

1. Page 1 under 'other Rulings on this topic'

(a) Omit 'IT 289;'

(b) Omit 'IT 2301;'

2. Paragraph 1

Omit '1936 ('the Act')'; substitute '1997 (ITAA 1997)'.

3. Paragraph 2

Omit 'Act, including sections 36AAA, 70, 75AA, 75B, 75D and the 'averaging provisions' (Division 16 of Part III of the Act)'; substitute 'ITAA 1997 and the Income Tax Assessment Act 1936 (ITAA 1936)'.

4. Paragraph 3

Omit 'Act'; substitute 'ITAA 1997'.

5. Paragraph 5

Omit the second and fourth dot points.

6. Paragraph 6

Omit 'TR 93/26'; substitute 'TR 2008/2'.

7. Paragraph 7

Omit '(see paragraphs 22 and 23 of Taxation Ruling TR 92/20); substitute '(see paragraphs 75 and 76 of Taxation Ruling TR 2006/10)'.

8. Paragraph 8

Omit the paragraph; substitute:

8. Subsection 995-1(1) of the ITAA 1997 defines 'primary production business' as carrying on a business of:

(a)
cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or
(b)
maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or
(c)
manufacturing dairy produce from raw material that you produced; or
(d)
conducting operations relating directly to taking or catching fish, turtles, dugong, bêche-de-mer, crustaceans or aquatic molluscs; or
(e)
conducting operations relating directly to taking or culturing pearls or pearl shell; or
(f)
planting or tending trees in a plantation or forest that are intended to be felled; or
(g)
felling trees in a plantation or forest; or
(h)
transporting trees, or parts of trees, that you felled in a plantation or forest to the place:

(i)
where they are first to be milled or processed; or
(ii)
from which they are to be transported to the place where they are first to be milled or processed.

9. Paragraph 9

(a) Omit 'Act'; substitute 'ITAA 1997'.

(b) Omit '6(1)'; substitute '995-1(1) of the ITAA 1997'.

10. Paragraph 10

Omit '6(1)'; substitute '995-1(1)'.

11. Paragraph 19

Omit the paragraph; substitute:

19. A person can apply for a Ruling under Division 359 of Schedule 1 to the Taxation Administration Act 1953 (TAA) on whether he/she is carrying on a business: (see TR 2006/11).

12. Paragraph 20

Omit the first sentence.

13. Paragraph 21

Omit the paragraph.

14. Paragraph 24

Insert '[1936]' after 'Income Tax Assessment Act'.

15. Paragraph 74

Omit 'Act'; substitute 'ITAA 1936'.

16. Paragraph 75

Omit 'Act'; substitute 'ITAA 1936'.

17. Paragraph 76

Omit 'paragraph 9 of Taxation Ruling TR 93/26'; substitute 'Taxation Ruling TR 2008/2'.

18. Paragraph 104

Omit the paragraph; substitute:

104. A person can obtain a Private Ruling under Division 359 of Schedule 1 to the TAA on whether he/she is carrying on a business (see TR 2006/11).

19. Paragraphs 105 to 107

Omit the paragraphs.

20. Paragraph 108

(a) Omit 'may' (first occurrence); substitute 'must'.

(b) Omit '14ZAM of the TAA'; substitute '357-105 of Schedule 1 to the TAA'.

(c) Omit 'remains insufficient the Commissioner does not need to comply with the application: refer to paragraph 14ZAN(1) of the TAA'; substitute 'the applicant does not provide the information to the Commissioner within a reasonable time, the Commissioner may decline to make the Ruling: subsection 357-105(2)'.

21. Footnote 1

Omit 'Act'; substitute 'ITAA 1936'.

22. Legislative References

Omit the references; substitute:

-
ITAA 1936
-
ITAA 1936 6
-
ITAA 1936 262A
-
ITAA 1997
-
ITAA 1997 995-1(1)
-
TAA 1953 Sch 1 357-105
-
TAA 1953 Sch 1 357-105(2)
-
TAA 1953 Sch 1 357-110 in
-
TAA 1953 Sch 1 Div 359

This Addendum applies on and from 14 September 2006.

Commissioner of Taxation
16 November 2011

References

ATO references:
NO 1-1Y6OAFD

ISSN: 1039-0731