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TBA Dispels Industry Taxation Rumours
Thoroughbred Breeders Australia (TBA) has sought to allay any fears arising as a result of an article appearing in newspapers across Australia on Monday titled "Racehorse owners to fight Tax Office crackdown." The article effectively stated that the tax office has ruled that breeders who also race their horses are not carrying on a business, meaning they may not use the losses to reduce the tax bill payable on their other income. The TBA has described the article as misleading and says the ATO has not changed its approach to deliberating on the question of "business vs hobby." Thoroughbred taxation expert, Adam Tims of Stable Financial, and current Treasurer of Thoroughbred Breeders Australia (TBA) and Aushorse says: "The ATO's view on tax matters relating to the Thoroughbred industry is still found in its public ruling TR 2008/2. It is business as usual and each taxpayer's unique situation continues to be assessed on a case by case basis. Hundreds of years of case law remain relevant." Mr Tims added: "The increased audit activity referred to in Monday's article is due to greater scrutiny of wealthy Australians rather than a specific crackdown of the Thoroughbred industry. It just so happens that many wealthy Australians also compete in the Thoroughbred market."