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Edited version of private advice
Authorisation Number: 1051795779404
Date of advice: 12 January 2021
Ruling
Subject: Small business concessions
Question
Will the Commissioner exercise his discretion under section 103-25(3)(b) of the Income Tax Assessment Act 1997 to allow an extension of time to DD MM YYYY to make a written choice to apply the small business retirement exemption?
Answer
Yes. Generally, the way you prepare your income tax return is evidence of the making of a choice in relation to CGT. However, an exception is that a choice to apply the small business retirement exemption must be made in writing (paragraph 103-25(3)(b) of the Income Tax Assessment Act 1997). You have yet to make a choice in writing to apply the small business retirement exemption. A choice in relation to CGT must be made by the day you lodge the relevant income tax return or within a further time allowed by the Commissioner. Having regard to your circumstances it is considered appropriate to allow you an extension of time to DD MM YYYY to make a written choice to apply the small business retirement exemption.
This ruling applies for the following periods:
DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
You purchased farmland.
You sold farmland.
Due to the sale of the farmland, you had a CGT event that resulted in a capital gain amount.
You were advised that when lodging your income tax return (using a registered tax agent), you did not declare the capital gain amount or make a written choice to apply the small business retirement exemption to the capital gain.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 103-25
Income Tax Assessment Act 1997 section 152-305
Income Tax Assessment Act 1997 section 152-315