| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051617813769
Date of advice: 5 December 2019
Ruling
Subject: Income tax - extension of time to make a choice
Question
Will the Commissioner exercise the discretion under subsection 103-25(1)(b) of the Income Tax Assessment Act 1997 to grant an extension of time until XX December 20XX to allow the taxpayers to make a choice to apply the CGT small business concessions to the sale of the property?
Answer
Yes. After considering the relevant circumstances and factors the Commissioner considers it appropriate to grant an extension of time to allow you to make a choice to apply the small business CGT concessions. There would be no prejudice to the Commissioner or unsettling of people by allowing the extension. There is no mischief involved. The Commissioner considers it fair and equitable in these circumstances to exercise the discretion.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The taxpayers owned a property.
The property was used for more than 15 years in a business which the taxpayers operated in partnership.
On XX November 20XX the taxpayers entered into a Contract of Sale to dispose of the property with a delayed settlement.
The taxpayers are eligible to apply the CGT small business concessions and meet the basic conditions.
The taxpayers have not included a capital gain in their 20XX income tax return and will lodge an amendment to record the capital gains tax event now that settlement has occurred.
The taxpayers intend to apply the small business concessions to reduce their capital gain.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 103-25(1)(b)