Private ruling: Capital Gains Tax - Extension of time to make a choice for the retirement exemption to apply
Date of advice: 6 November 2017
Published: March 2018
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2015

Ruling: Q1: Will the Commissioner exercise his discretion under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you an extension of time to XX/XX/XXXX to make a choice to apply the small business retirement exemption contained in Division 152 of the ITAA 1997? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under paragraph 103-25(1)(b) of the ITAA 1997 and allow an extension of time until XX/XX/XXXX to make the choice to apply the small business retirement exemption. Additional information The Commissioner has not considered your eligibility for the small business concessions in this ruling. You should ensure that you satisfy the basic conditions and any other relevant conditions.

Relevant facts and circumstances: You reported a capital gains tax event in your XXXX income tax return. You applied the 50% small business active asset reduction and small business rollover to reduce the gain to nil. You did not purchase a replacement asset by XX/XX/XXXX, being the end of the two year replacement asset period. Therefore, CGT event J5 was triggered for the financial year ended 30 June XXXX. On XX/XX/XXXX your XXXX income tax return was lodged by your tax agent. Due to an error, the capital gains tax event was not recorded in your XXXX tax return. You wish to amend your XXXX tax return and apply the retirement exemption. At the time of lodging your XXXX income tax return you were recovering from major surgery and you were not well enough to discuss this issue with your agent or to make an application in writing to apply the retirement exemption. You have not utilised the retirement exemption previously.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 103-25(1)(b).


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