Edited version of private advice

Authorisation Number: 1052026440595

Date of advice: 29 August 2022

Ruling

Subject: CGT - deceased estate

Question

Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time to dispose of the property and disregard the capital gain or loss?

Answer

Yes. 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

The deceased acquired the property as a Pre-CGT asset.

The property was a block of units which was rented.

The deceased passed away in mid-20XX.

The estate is complex, consisting of multiple real properties in Australia, real property in overseas, an interest in a deceased estate in overseas and, it was thought, a company in overseas.

The executor received notice that one of the beneficiaries, the deceased's partner, was considering a Family Provision Application in early 20XX.

A Family Provision Application was lodged by the deceased's child and a court order was issued in mid-20XX, altering the deceased's will.

There was a delay in getting instructions from the beneficiaries, who reside in Papua New Guinea, on what they wished to do with the property.

The communication with the beneficiaries in overseas needed to go through lawyers causing delays.

There were further disputes regarding the will.

The estate remained complex and multifaceted after the court order.

The property was listed for sale in mid-20XX.

Sale contract for the property was signed in late 20XX and settled in late 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195