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Edited version of private advice
Authorisation Number: 1051941387638
Date of advice: 22 February 2022
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise discretion under subsection 152-125(4) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit and allow the exempt payments from disregarded capital gain be withdrawn and paid to the company's concession stakeholder?
Answer
Yes. Considering the relevant facts and circumstances, the Commissioner will allow an extension of the time limit undersubsection 152-125(4) of the ITAA to allow the exempt payments from disregarded capital gain be withdrawn and paid to the company's concession stakeholder.
This ruling applies for the following period:
DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
Company X was established.
Company X purchased a commercial property.
Company X sold the commercial property and made a capital gain which was declared in the 20XX/XX Income Tax Return as Other Gross Income.
Person A has been a director of Company X and has more than 20% of the voting power.
The commercial property was sold in connection with Person A's retirement.
Company X was carrying on a business in the 20XX/XX financial year and have had an aggregated turnover of less than $2 million.
Company X lodged an objection, requesting the 15-year small business concession be applied to the capital gain amount declared in the 20XX/XX Income Tax Return.
Company X was issued a decision which allowed their request to be granted.
Person A passed away.
Company X intend to withdraw the exempt proceeds that were incorrectly declared in 20XX/XX Income Tax Return as Other Income to be paid to the Estate Person A.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-125(4)