Private ruling: 2 Year Extension – Commissioners Discretion
Date of advice: 1 May 2019
Published: June 2019
Ruling period: Period ending 30 June 2019
Date scheme commenced: 1 July 2018

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 until 30 April 2019? | A1: Yes The Commissioner will exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until 30 April 2019?

Relevant facts and circumstances: The deceased purchased a property in 19xx. There was a reverse mortgage taken on the property in 20xx. The deceased died 20xx. Probate was granted to the Public Trustee The property was left in their will to their two children. The Public Trustee was charged with selling the property. A real estate agent was engaged. There was an offer on the property - the buyers then changed their mind. The finance company considered foreclosing on the reverse mortgage. The loan was repaid by the beneficiaries. The beneficiaries asked the Public Trustee to execute the will. An offer was made on the property. The offer was accepted but finance fell through. Two additional offers were accepted – each offer fell through due to finance difficulties. The property was consistently maintained and available for purchase since the first listing. The property was sold. Settlement was finalised outside the two year requirement.

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