| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052236689684
Date of advice: 27 March 2024
Ruling
Subject: Commissioner's discretion - deceased estates
Question
Will the Commissioner exercise their discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow any available small business capital gains tax concessions to be applied to the sale of an active asset?
Answer
Yes. Having considered the relevant circumstances, particularly in relation to the delays caused by disputes over the estate and the COVID-19 restrictions, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension of time.
This ruling applies for the following period:
Year ending 30 June 2024
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
The deceased traded as a primary producer.
The land that the farm operated on was transferred under the deceased's will to their estate and continued to be used as primary production land.
The executors of the deceased's will are their children, the deceased's partner and their child.
Approximately six months after the deceased died communication broke down between the executors.
Time was spent trying to communicate between the parties to decide what to do with the farm while trying to run the farm.
Both parties needed to get independent advice from their own solicitors to complete a deed and settle the estate.
COVID-19 restrictions made meeting more difficult as no one was able to meet in person.
The properties were sold over 2 years after the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997subsection 152-80(3)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
