Private ruling: Affiliates and CGT small business concessions
Date of advice: 5 August 2019
Published: October 2019
Ruling period: Year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

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. Individual A regularly discussed and consulted with you about the business. You would purchase supplies. You were responsible for the day to day running of the business. There was no formal agreement between you and either Individual A or Individual B. You were not paid. You did occasionally draw small amounts from the profits. You were the signatory for the bank account. You paid all the bills, did the online banking and the bookkeeping. 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