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Edited version of your written advice

Authorisation Number: 1051364716100

Date of advice: 24 April 2018

Ruling

Subject: CGT – SBC – deceased estate – extension of time

Question

Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to enable the small business capital gains tax (CGT) concessions to be applied?

Answer

Yes

This ruling applies for the following period

Year ending 30 June 2018

The scheme commenced on

1 July 2017

Relevant facts and circumstances

The deceased owned land which was used in their business.

The land has been in the deceased’s family for many generations.

The land was leased a few months before the deceased passed away.

The land was disposed of outside of the two year period.

The deceased would have satisfied the basic conditions for the small business CGT concessions just before their death.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 152-80

Reasons for decision

Section 152-80 of the Income Tax Assessment Act 1997 (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 if certain conditions are satisfied.

These conditions, as set out in subsection 152-80(1) of the ITAA 1997, are:

The Commissioner may extend the time limit (subsection 152-80(3) of the ITAA 1997).

In determining whether to exercise the discretion to extend the time limit set out in paragraph 152-80(1)(d) of the ITAA 1997, the Commissioner has considered the following factors:

Having considered the circumstances of this particular case and the factors outlined above, the Commissioner is able to apply his discretion to extend the time limit in paragraph 152-80(1)(d) of the ITAA 1997.


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