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Edited version of private advice
Authorisation Number: 1051619767993
Date of advice: 11 December 2019
Ruling
Subject: Small business concessions - Retirement
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 XX May 2020 to choose to apply 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 2019
The scheme commences on:
1 July 2018
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.
During the financial year the trust had a capital gain event.
The capital gains event (A1) occurred from the sale of active business assets.
The business sale satisfies the small business CGT concessions in which the taxpayer has applied the small business active asset reduction and 50% capital gain tax general discount to the gain.
For the remainder of the gain, the taxpayer intends to apply the small business CGT retirement exemption.
The 20XX ITR was prepared on the basis that the taxpayer intended to make the choice to apply the retirement exemption.
The 20XX ITR was accidently lodged in our tax agent software program. At the time of lodgement the trustee had not made the required choice in writing specifying the percentage of each CGT asset's CGT exempt amount that is attributable to each of the trust's CGT stakeholders.
The intention was to lodge the 2019 ITR once the valid choice was made.
There is evidence of an acceptable explanation for the period of time requested and that it would be fair and equitable in the circumstances to provide such an extension.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 103-25(1)