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Edited version of private advice
Authorisation Number: 1051612101913
Date of advice: 27 November 2019
Ruling
Subject: Small business concessions - Active Asset Reduction, Retirement
Question
Will the Commissioner exercise the discretion contained in subsection 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you further time to 30 January 2020 to choose to apply the small business 50% reduction (Subdivision 152-C) and the small business retirement exemption (Subdivision 152-D) ?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of time to access the small business concessions. Further information can be found by searching 'QC 52292' on ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You sold an asset to a related entity.
The sale resulted in a gross capital gain.
Under self-assessment, you have advised that you qualified to apply to the sale the 50% CGT general discount, the 50% small business reduction (active asset) and the small business retirement exemption.
Application of these concessions results in a reduction of the capital gain to nil.
On your previous Income tax return (ITR) your tax agent failed to complete the relevant sections to show at item 18 details of the CGT event and concessions that could be applied.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 103-25