Private ruling: CGT - small business concessions
Date of advice: 22 February 2022
Published: May 2022
Ruling period: DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: 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Assessment Act 1997 (ITAA 1997) to extend the time limit and allow the exempt payments from disregarded capital gain be withdrawn and paid to the company's concession stakeholder? | A1: 


Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 152-125(4)


Answer: Yes. Considering the relevant facts and circumstances, the Commissioner will allow an extension of the time limit under subsection 152-125(4) of the ITAA to allow the exempt payments from disregarded capital gain be withdrawn and paid to the company's concession stakeholder. | 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. | 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.