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Edited version of private advice
Authorisation Number: 1051749963469
Date of advice: 03 September 2020
Ruling
Subject: Small business concessions 15 year exemption - extension of time
Question
Will the Commissioner's discretion be exercise under subsection 152-125(4) of the ITAA 1997 to allow an extension of time for the payment of the exempt amount out to a capital gains tax (CGT) Concession Stakeholder until XX June 20XX?
Answer
Yes. Based on the information provided the Commissioner will exercise their discretion to extend the two year time limit stipulated in subparagraph 152-125(1)(b)(i) of the ITAA 1997 for the payment of the exempt amount to be made to the CGT stakeholder until xx June 20xx.
This ruling applies for the following period:
Year ending 30 June 20xx
The scheme commences on:
xx July 20xx
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.
The Company is eligible to apply the small business concessions to the sale of a property. This was confirmed in a private ruling.
The Company has been unable to make a payment to the CGT concession stakeholder because the company is yet to receive the capital proceeds from the sale of the property.
The Company commenced legal action against the purchaser and other parties in relation to the sale of the property and to recover an amount of $x million, plus interest and costs.
Due to COVID-19 the process has been delayed; the next court date is scheduled for XXXX however it is anticipated that the process will not be finalised until a later point.
Relevant legislative provisions
Income Tax Assessment Act 1997 subparagraph 152-125(1)(b)(i)