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Edited version of private advice
Authorisation Number: 1051522948277
Date of advice: 1 June 2019
Ruling
Subject: Capital gains tax - small business concessions - 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 to allow the small business capital gains tax (CGT) concessions to be applied?
Answer
Yes.
This ruling applies for the following periods:
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts
The deceased passed away in 20xx. (The deceased)
The deceased acquired an interest from their relative farming in land. (Property 1)
The deceased acquired the interest after 20 September 1985 with their parent ('A').
The deceased and 'A' jointly acquired an additional block of land in 20xx. (Property 2)
The deceased and their parent conducted a primary production business on the combined land.
If the deceased had disposed of their interest in the properties immediately prior to death, they would have been eligible to claim the small business CGT concessions in relation to the land.
'A' passed away in 20xx.
'A' was not up to date in managing their financial affairs with many years of outstanding income tax lodgements required to be lodged.
The deceased had been assisting 'A' manage the outstanding financial affairs.
The sudden passing away of the deceased without completing the financial affairs caused some delays in administering the affairs of both 'A' and the deceased.
The executor of the estate approached an accountant in 20xx to complete the outstanding income tax returns and finalise the financial affairs of the deceased.
Due to the difficult personal circumstances, the requirement to reconstruct financial records, the complexities of dealing with inter connected deceased estate delays were experienced in administering the estate and selling the farming land.
The executors have continued to operate the primary production business until settlement.
The farming land was prepared for sale and subsequently sold at auction with settlement occurring in 20xx.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 152-80
Income Tax Assessment Act 1997 Subsection 152-80(3)