Private ruling: Capital gains tax: affiliate: CGT small business concessions
Date of advice: 13 May 2019
Published: July 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is person B your affiliate? | A1: Yes. The Commissioner considers that the conditions in section 328-130 of the Income Tax Assessment Act 1997 (ITAA 1997) are met. | Q2: Are you entitled to access the CGT small business concessions in relation to the sale of the land? | A2: Yes, you are able to access the CGT small business concessions in division 152 of the ITAA 1997.

Relevant facts and circumstances: You are over the age of 55. You and person B owned land (the land). The land was held by you and person B as tenants in common in equal shares. The land was sold. During the ownership period, person B operated a small business entity on the land (the business). Person B acted in accordance with your directions or wishes or in concert with you in relation to the business. The land is an active asset. There was no formal agreement between you and person B. You were not paid by person B. You satisfy the $6 million net asset value test.

Relevant legislative provisions: Income Tax Assessment Act 1997 division 152 | Income Tax Assessment Act 1997 section 328-130