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Edited version of private advice
Authorisation Number: 1051916047905
Date of advice: 1 November 2021
Ruling
Subject: Capital gains tax - extension of time
Question 1
Will the Commissioner, pursuant to subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997), allow an extension of time to the two year period?
Answer
Yes, taking into consideration the legal challenge to the will and the court proceedings the Commissioner will allow an extension of time.
Question 2
Will the Commissioner, pursuant to subsection 118-195(1) of the ITAA 1997 allow an extension of time to the two year period?
Answer
Yes, taking into consideration the legal challenge to the will and the court proceedings the Commissioner will allow an extension of time.
This ruling applies for the following period:
Year ended 30 June 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
The deceased was murdered in 2014.
They owned a property which was acquired in 1991. It consisted of a residential home used as their main residence and sheds/workshop used to operate a business.
The deceased was the sole director and sole shareholder of the company up until their death.
The company operated the business on the property until the deceased's death.
The will was challenged via court proceedings which were settled in April 2016.
With the conclusion of the proceedings, the estate proceeded to be wound up by the executor who instructed a liquidator to voluntarily wind up the company which was concluded in July 2016.
The executor transferred the property to you and another beneficiary in June 2016.
As the property was not used for a period of time, a close family friend offered to rent it while the court cases were ongoing to help maintain the property.
The beneficiaries agreed that with conclusion of the murder trial, the appeal, the challenge to the will and the winding up of the company that the ownership of the property brought ongoing emotional distress.
The property was listed for sale with an agent in 2020. The property was sold and contracts were exchanged in 2020 and settlement occurred in 2021.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)
Income Tax Assessment Act 1997 subsection 118-195(1)