Private ruling: Capital Gains Tax and the Commissioner's discretion to extend the two year period
Date of advice: 8 November 2017
Published: April 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to XX September 20XX? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997, and allow an extension of time until XX September 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away on XX May 20XX. The deceased acquired a property in 19XY. The property was the deceased’s main residence prior to entering aged care in early 20XX. The deceased left a Will appointing their spouse and two other substituted executors as executors of his Will. Both the deceased’s spouse and one of the substituted executors passed away prior to the deceased. The remaining substituted executor renounced their position as executor due to their old age. As the named executors had predeceased and renounced, it appeared that the State Trustee would be appointed as executor of the Estate, however this never occurred. In May 20XX the process of finding alternative administrators and beneficiaries of the Will began. All of the residual beneficiaries resided overseas. None of the beneficiaries speak English, and accordingly it took a while to hear back from them. Eventually two of the three residual beneficiaries agreed to step in as the administrators of the Estate. As neither of the administrators speaks English, all correspondence was handled through their attorney. Letter of administration was applied on XX November 20XX and was granted on XX February 20XX. The property was then put on the market for sale. The property settled on XX September 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 118-195(1).