Private ruling: Capital gains tax - small business concessions
Date of advice: 19 June 2025
Published: 18 August 2025
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner extend the time limit in paragraph 152-125(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to February 2026 in accordance with subsection 152-125(4) of the ITAA 1997, for payment of the exempt amount to the capital gains tax (CGT) concession holder? | A1: Yes. Having considered the circumstances including the payment from the sale being delayed by factors outside the Company's control, the Commissioner will allow an extension of time beyond two years to February 20XX as per subsection 152-125(4) of the ITAA 1997.

Relevant facts and circumstances: The Company was formed in 19XX and conducted its business from that time until it was sold in 20XX. The Company sold its business in February 20XX resulting in a capital gain. The purchase price was apportioned between the assets sold which included plant, stock, goodwill and other assets. The parties to the contract of sale were unrelated and negotiated the sale terms at arm's length. On settlement $xx was payable, with the balance of $xx to be paid to the Company via instalments of $xx per month but this obligation was subject to there being sufficient cash in the business to pay the amount. The purchaser of the business has been unable to pay the full purchase price, with $xx remaining unpaid. The purchaser has informed the Company that it expects to be able to pay the balance of the purchase price within the next X months. Person A was the sole director and shareholder of the company.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 152-125(1)(b) | Income Tax Assessment Act 1997 subsection 152-125(4)