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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1012999704217

Date of advice: 22 April 2016

Ruling

Subject: Capital gains tax - Extension of time - Commissioner's discretion

Question:

Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the 2 year time limit?

Answer:

Yes.

This ruling applies for the following period:

Year ending 30 June 2016

The scheme commenced on:

1 July 2015

Relevant facts

The deceased passed away in 20XX.

The deceased operated a business on a property before their death for over 15 years.

At the date of death the deceased satisfied all the basic conditions under Subdivision 152A of the ITAA 1997 to access the small business concessions in relation to the 15 year exemption.

A portion of the property was sold to a third party.

The remainder of the property remained on sale and was difficult to sell.

A new real estate agent was approached to provide an alternative marketing plan to sell the property.

The property was sold a few months after the two year period from the date of death of the deceased.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 152-80

Income Tax Assessment Act 1997 Subsection 152-80(3)

Reasons for decision

Section 152-80 of the ITAA 1997 allows either the legal personal representative of an estate or the beneficiary to apply the small business CGT concessions in respect of the sale of the deceased's asset in certain circumstances.

Specifically, the following conditions must be met:

In determining whether the discretion to allow further time should be exercised, the Commissioner considered the following factors:

In this case, we consider that you have provided a reasonable explanation for the delay in the disposal of the CGT asset. Considering the timeframe involved, we do not consider allowing this request would cause the unsettling of others.

Accordingly, the Commissioner will exercise his discretion under subsection 152-80(3) of the ITAA 1997 to extend the time period.


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