Private ruling: Capital gains tax small business concessions
Date of advice: 11 June 2019
Published: August 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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 further time in which to choose to apply the small business capital gains tax (CGT) rollover to the sale of shares? | A1: Yes, the Commissioner will allow an extension of time.

Relevant facts and circumstances: You were a shareholder in a company. You sold your shares. You received capital proceeds from the sale and were required to deal with the resulting capital gain in your income tax return. You satisfied the basic conditions in subdivision 152-A of the ITAA 1997. You were entitled to access the small business CGT concessions in division 152 of the ITAA 1997. You wanted to choose to use the small business roll-over in subdivision 152-E of the ITAA 1997. Due to an oversight by your former tax agent, the capital gain was not considered in your income tax return. Consequently, you did not make any choice regarding the small business CGT concessions.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 103-25(1)(b) | Income Tax Assessment Act 1997 division 152 | Income Tax Assessment Act 1997 subdivision 152-A | Income Tax Assessment Act 1997 subdivision 152-E