Private ruling: Extension of time - small business 15-year exemption
Date of advice: 8 September 2022
Published: December 2022
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner, pursuant to section 152-125(4) of the Income Tax Assessment Act 1997 (ITAA 1997), extend the time limit under paragraph 152-125(1)(b) of the ITAA 1997 for payment of the exempt amount to CGT concession stakeholders from two years to ten years? | A1: Yes. You have provided an acceptable explanation for the period of extension requested. It does not appear that there would be any prejudice to the Commissioner in allowing the extension. There would be no unsettling of people or unfairness to people in like positions or the wider public. There does not appear to be any mischief involved. It would be fair and equitable to allow an extension of time. Accordingly, the Commissioner will allow an extension of time.

Relevant facts and circumstances: The Company purchased the property in 20XX. The Company entered into a contract of sale to sell the property. The Company offered a vendor mortgage to the purchaser due to the purchaser's inability to obtain finance. The Contract of sale was structured so that the payment for the sale would be received in accordance with a special condition in the contract. Vendor Mortgage The parties agreed that the purchase price will be paid by way of a mortgage from the vendor to be registered on title as first mortgagee. The sale agreement was structured so that the settlement of the payment for the sale would be received in • Over 119 months. • The first payment is due 2 months after signing the contract and thereafter monthly. The Company owned a property for more than 15 years. The property was an active asset of a connect small business entity. The property was sold in the 20XX financial year. You have advised that the Company satisfies the basis conditions in section 152-10 of the ITAA 1997. You have advised that the Company satisfies the conditions for the small business 15 year exemption in section 152-110 of the ITAA 1997. The company had a significant individual for at least 15 years and just before the CGT event, the individual was over 55 years of age and the event happened in connection with their retirement.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 152-125 | Income Tax Assessment Act 1997 Subsection 152-125(1) | Income Tax Assessment Act 1997 Subsection 152-125(4)