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Edited version of private advice
Authorisation Number: 1052007750156
Date of advice: 15 July 2022
Ruling
Subject: Commissioner's discretion - deceased estates
Question
Will the Commissioner grant an extension to the two-year period to dispose of the Property?
Answer
Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Person A (the Deceased) owned a property (the Property). The Property was their main residence at the time of their death.
Person A died several years ago. Their child (Person B) and spouse (Person C) are the executors of their estate.
At several times during 20XX and 20XX, the executors booked flights from their city to the Property's location to clean out the Deceased's house. These flights had to be cancelled due to issues with the COVID pandemic, including lockdowns and border closures.
Their child (Person D) also required an operation during this period and could not be left alone for a period of several weeks.
The executors booked a trip to visit the Deceased, but the Deceased died days after the executors booked the trip. The executors decided they would still travel and commence cleaning out the Property. However, they were unable to do so due to their state having a lockdown for several months.
When restrictions were temporarily lifted, the executors flew to the Property's location and spent several days cleaning out the house. They planned to come back and complete this the following month.
However, due to restrictions in both states, they were unable to travel as if they entered the state where the Property was located, they would not be allowed back into their home state.
They then planned a trip to the town where the Property was located for two months from then. However, the town where the Property was located went into a lockdown for a few days and they had to cancel the trip.
They again planned a trip to the town where the Property was located for another three months' time, but also had to cancel this trip due to continuing lockdowns and restrictions.
When the state border was reopened, the executors booked flights for the next month. Once at the Property, they spent several weeks cleaning out the Property and put it on the market for sale.
The Property was sold just outside of the two-year period.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)