Private ruling: Capital gains tax - small business concessions - extension of time to make a choice
Date of advice: 19 June 2019
Published: August 2019
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020 | 1 July 2016

Ruling: Q1: Will the Commissioner allow further time under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to choose to apply a small business concession under Division 152 of the ITAA 1997 to a capital gain that arose in the year ended 30 June 2017? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of time to make a choice under paragraph 103-25(1)(b). Further information can be found by searching 'QC 52288' on ato.gov.au


Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 103-25(1) | Income Tax Assessment Act 1997 paragraph 103-25(1)(b) | Income Tax Assessment Act 1997 subsection 103-25(2) | Income Tax Assessment Act 1997 paragraph 103-25(3)(b) | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-205 | Income Tax Assessment Act 1997 section 152-305


Relevant facts: You acquired a property (The property). | The property has been leased ('A') since acquisition. | The property is used in the business of ('A') which is also a connected entity of you. | 'A' sold business assets to 'B' which is an unrelated entity in 20xx. | 'A' also entered into a lease for the property to 'B' in 20xx for a period of time to ensure that there was a smooth transition of business ownership and client stability. The lease agreement ended 20xx. | Due to family health issues the managing director ('C') and shareholder of 'A' decided to sell the business and enter the lease agreement with 'B'. | 'D' is the spouse of 'C' and is the significant individual of you. | The aggregated turnover was less than $2 million. | The net asset value of the trust, its affiliates and connected entities was less than $6 million. | The property was sold in 20xx. | You have a net capital gain as a result of the sale of the property and this has been included in your income tax return. | A distribution was made to 'C' and 'D'. | You have used the services of a tax agent for a number of years. | You have recently reviewed your income tax return and are now aware that you are eligible to access the small business concessions and would like to amend your income tax.