Private ruling: Extension of time - small business 15 year exemption
Date of advice: 23 November 2022
Published: 23 January 2023
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) to extend the time limit for payments of the exempt amount to be made to the capital gains tax (CGT) concession stakeholders? | A1: Yes. Under subsection 152-125(4) of the Income Tax Assessment Act 1997 (ITAA 1997) the Commissioner may extend the two year time limit. The Commissioner generally extends the time limit where the delay in receiving the capital proceeds is out of your control. Having considered the facts and circumstances of your application, the Commissioner will exercise discretion to apply a further extension of time for the payment of the exempt amount out to a (CGT) concession stakeholder until 30 November 2022.

Relevant facts and circumstances: The Company owned the property for more than 15 years. You have determined that the Company satisfies the requirement of the small business concessions 15 year exemption under Subdivision 152-B of the ITAA 1997 in relation to the sale of the Property. In May 20XX, the Commissioner previously exercised discretion to allow an extension of time to the Company. You have stated that the liquidation of the Company and payments to CGT concession holder has been delayed due to one of the concession holders passing away and waiting for an ATO Tax Clearance.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-B | Income Tax Assessment Act 1997 section 152-125(4)