Private ruling: Extension of time - small business 15-year exemption
Date of advice: 27 February 2023
Published: 17 April 2023
Ruling period: 1 July 20XX - 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner, pursuant to subsection 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 four 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 and commenced a Business on the Property which it operated for more than 15 years. Individual 1 and Individual 2 are both equal shareholders of the Company. The Company entered into a contract of sale to sell the Property and Business. 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 Schedule to Loan Agreement. A Deed of Amendment to Loan Agreement was recently entered with the borrower and guarantors to reduce the term of the loan. The Company operated with an aggregated turnover of less than $X million in each income year. 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. You have advised that the Company satisfies the basics 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.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-110 | 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)