Private ruling: Small business capital gains tax (CGT) 15-year exemption
Date of advice: 11 October 2019
Published: December 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner extend the time period under subsection 152-125(4) of the Income Tax Assessment Act 1997 (ITAA 1997) for the payment of the CGT exempt amount to a CGT concession stakeholder to be exempt? | 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: Company 1 and Company 2 acquired ownership interests in the Land on a date after 19 September 1985. Company 1 and Company 2 were in a partnership that operated a business on the Land for more than seven and a half years. The aggregated turnover of Company 1 and Company 2 for the 20XX income year was less than $2 million. There has been at least one shareholder with an ownership interest of 20% or greater in Company 1 and Company 2 for at least 15 years during its ownership period. This individual has not always been the same individual. In the 20XX income year Person A owned or acquired more than 20% of the shares in Company 1 and Company 2. Person B was the spouse of Person A until their passing in 2017. Person B will acquire all of Person A's shares in Company 1 and Company 2 under the will. The Land was contracted for sale in 20XX. Capital proceeds from the sale were received in 20XX. As a result of the sale of the Land, Person B retired in the 20XX income year. A challenge to Person A's will has been lodged in the Supreme Court. To date there have been multiple hearings and an attempted mediation, but the matter has not yet resolved.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 128-10 | Income Tax Assessment Act 1997 section 128-15 | Income Tax Assessment Act 1997 section 128-20 | Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-55 | Income Tax Assessment Act 1997 section 152-60 | Income Tax Assessment Act 1997 section 152-70 | Income Tax Assessment Act 1997 section 152-75 | Income Tax Assessment Act 1997 section 152-115 | Income Tax Assessment Act 1997 section 152-125