Taxation Ruling
TR 1997/11A1 - Addendum
Income tax: am I carrying on a business of primary production?
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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;'
Omit '1936 ('the Act')'; substitute '1997 (ITAA 1997)'.
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)'.
Omit 'Act'; substitute 'ITAA 1997'.
Omit the second and fourth dot points.
Omit 'TR 93/26'; substitute 'TR 2008/2'.
Omit '(see paragraphs 22 and 23 of Taxation Ruling TR 92/20); substitute '(see paragraphs 75 and 76 of Taxation Ruling TR 2006/10)'.
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.
(a) Omit 'Act'; substitute 'ITAA 1997'.
(b) Omit '6(1)'; substitute '995-1(1) of the ITAA 1997'.
Omit '6(1)'; substitute '995-1(1)'.
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).
Omit the first sentence.
Omit the paragraph.
Insert '[1936]' after 'Income Tax Assessment Act'.
Omit 'Act'; substitute 'ITAA 1936'.
Omit 'Act'; substitute 'ITAA 1936'.
Omit 'paragraph 9 of Taxation Ruling TR 93/26'; substitute 'Taxation Ruling TR 2008/2'.
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).
Omit the paragraphs.
(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)'.
Omit 'Act'; substitute 'ITAA 1936'.
Omit the references; substitute:
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- ITAA 1936
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- ITAA 1936 6
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- ITAA 1936 262A
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- ITAA 1997
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- ITAA 1997 995-1(1)
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- TAA 1953 Sch 1 357-105
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- TAA 1953 Sch 1 357-105(2)
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- TAA 1953 Sch 1 357-110 in
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- 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