Taxation Ruling

IT 2123

Income tax : carrying on a business - musician

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FOI status:

May be releasedFOI number: I 1122309

PREAMBLE

It has been decided that no appeal will be lodged against a decision of Taxation Board of Review No. 2 dated 20 September 1984 that a taxpayer was carrying on business as a musician. The decision was reported as Case R96 ATC 637 and 27 CTBR(NS) Case 149.

FACTS

2. In 1979 the taxpayer, a clerk employed with the Australian Public Service, obtained part-time employment in a music band. In the years of income ended 30 June 1980, 1981 and 1982 the taxpayer had formed a succession of bands of his own. He purchased musical equipment to the value of $7,000.

3. The taxpayer also accepted a position in another band on a casual basis. In addition he engaged in the writing of lyrics and the composing of supporting music. The taxpayer developed many such compositions and taped and forwarded a selection of those to a number of recording and publishing companies.

4. The taxpayer spent between 10 to 20 hours per week when composing and at least 20 hours per week on those additional occasions when he was either rehearsing or performing with musical groups.

5. The Board was of the opinion that the taxpayer's activities were undertaken on a continuous and repetitive basis, were carried out without interruption throughout the period in question and were organised in a business-like manner.

RULING

6. The decision reached by the Board was open to it on the evidence adduced at the hearing. The decision applies existing law to the facts established before the Board and no change in assessing policy is necessary.

COMMISSIONER OF TAXATION
12 December 1984

References

ATO references:
NO 81/5929
BO SYD - AF 1865 AF 3774

Date of effect:
Immediate

Subject References:
CARRYING ON A BUSINESS - MUSICIAN

Legislative References:
51(1)

Case References:
Case R96
84 ATC 637

Case 149
27 CTBR(NS) 1159