Private ruling: Capital gains tax: small business concessions: affiliates
Date of advice: 20 August 2019
Published: October 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are either Individual A or Individual B your affiliates? | A1: Yes. The Commissioner considers both Individual A and Individual B are your affiliates as the conditions in section 328-130 of the Income Tax Assessment Act 1997 (ITAA 1997) are met.

Relevant facts and circumstances: You owned the property. You sold the property. During the ownership period of the property, Individual A and Individual B used the property in a partnership operated by them. There was no lease agreement. You were not paid rent. You have relevant qualifications. Individual A and Individual B regularly discussed and consulted with you about the business. You provided advice when making major business decisions including the need for the property. There was no formal agreement between you and either Individual A or Individual B. You were not paid. You provided bank guarantees and indemnities. You provided the property as security. The partnership is a small business entity. The property is an active asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 division 152 | Income Tax Assessment Act 1997 section 328-130