Edited version of private advice

Authorisation Number: 1051754036695

Date of advice: 11 September 2020

Ruling

Subject: Capital gains tax - small business concessions

Question

Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit under subsection 152-80(1)(d) of the ITAA 1997 in relation to the sale of the capital gains tax (CGT) asset?

Answer

Yes. Having considered the full circumstances and the relevant facts, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time.

Note: We have limited our ruling to the question raised in your application being whether an extension of time will be granted.

You advised that the deceased would have been entitled to the small business CGT concessions immediately before they passed away. The private ruling on whether an extension of time will be granted was issued on this basis, that is, the Commissioner did not consider whether the deceased was in fact entitled to the small business CGT concessions. More information about the concessions can be found by searching 'QC 22165' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts

The deceased died on xxxx. The deceased owned CGT assets which were transferred to the estate on the date of death.

The affairs of the deceased were complicated and involved several entities.

A CGT event happened in relation to the CGT assets. The deceased would have been entitled to apply the small business CGT concessions just prior to his death.

The relevant parties worked to ensure matters were finalised as soon as possible. The COVID-19 pandemic slowed the process between March 20XX to June 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 152-80