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Edited version of private advice
Authorisation Number: 1052168257461
Date of advice: 10 November 2023
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner grant an extension of time under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) until 30 June 20XX to apply the small business capital gains tax (CGT) concessions to the disposal of the shares?
Answer
Yes. The deceased would have been eligible for the small business CGT concessions if they had disposed of their shares just before their death. Delays in disposing the shares were caused by disagreements between the stakeholders and a court order to wind up the business. Having considered the facts and circumstances, the Commissioner will exercise the discretion to grant an extension of time to dispose the shares until 30 June 20XX.
This ruling applies for the following period:
Year ended 30 June 2023
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
After September 1985 the deceased acquired 100 ordinary shares from a company.
The deceased passed away on in 20XX.
The deceased's shares were transferred to the estate beneficiary.
Delays in administration of the estate were caused by:
• Time taken in payment of the deceased's superannuation money
• Time taken and the engagement of lawyers to obtain payment from the company directors
• Waiting for payment from the directors causing financial difficulties
• Due to a disagreement between the stakeholders, a liquidator was appointed by court order to wind up the company.
The property was sold in 20XX.
In 20XX the liquidator paid a final distribution to the beneficiary for consideration of the shares.
The deceased would have been eligible for the small business CGT 15-year exemption in Subdivision 152-B if he had disposed of his shares just before his death.
Relevant legislative provisions
Income Tax Assessment Act section 152-80