| Disclaimer This edited version has been archived due to the length of time since original publication.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. 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: 1051578586792
Date of advice: 13 September 2019
Ruling
Subject: Commissioner's discretion
Question
Will the Commissioner exercise discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?
Answer
Yes. For the reasons you have given, the Commissioner has exercised discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allowed an extension of time to the two year period until the settlement date.
This ruling applies for the following period(s)
Year ended 30 June 20XX.
The scheme commences on
1 July 20XX.
Relevant facts and circumstances
The deceased died
The deceased had lived in and owned a dwelling. It was the deceased main residence until their death.
The deceased died intestate and Letters of Administration were granted.
The delay in dealing with the disposal of the main residence properly resulted from a number of factors contributing to the complexity of the situation. These include:
· A dispute over the distribution of the assets of the deceased:
· A relative passing away.
· Another relative becoming ill.
A relative engaged lawyers to assist to resolve the Estate and to have the house sold as another relative was not responding to communications. This continued for some time during which a relative became unwell and unable to instruct the solicitors.
A Supreme Court Order appointed an independent Administrator.
The property was put on the market. The delay was due to the requirement to wait for a relative to comply with the Court Orders and the need to obtain documentation from third parties.
The contract of sale for the disposal of the deceased's main residence was dated with settlement to be shortly afterwards. The settlement date was extended and occurred.
The property is less than X hectares
The property was acquired after 20 September 1985.
The dwelling was never used to produce income.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)