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Edited version of your written advice
Authorisation Number: 1051519596167
Date of advice: 18 May 2019
Ruling
Subject: Income Tax - capital gains- tax small business concessions
Question
Will the sale of your shares in the Company occur in connection with your retirement for the purposes of applying the small business 15 year exemption?
Answer
Yes.
Considering the relevant factors, particularly that the continuation of your employment with the Company will be a condition of the sale, we consider that the sale will occur in connection with your retirement. Further information can be obtained by searching QC52288 on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You intend to sell the shares in the Company and seek to apply the small business 15 year exemption to the sale.
The sale agreement will require you to continue to be employed by the Company for a period of time to assist in business continuity with key clients, suppliers and employees. Your work hours would reduce slightly and your responsibilities would be reduced significantly.
Relevant legislative provisions
Income Tax Assessment Act 1997 paragraph 152-105(d)