Private ruling: CGT small business concessions
Date of advice: 24 March 2020
Published: May 2020
Ruling period: Financial year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time under section 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to make a choice under the capital gains tax (CGT) provisions for a previous financial year? | A1: Yes Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of time for you to make a choice under paragraph 103-25(1)(b) of the ITAA 1997. Due to your previous accountant, you were not aware of nor have you previously applied the small business concessions. There is no mischief. The Commissioner considers it fair and equitable in these circumstances to allow an extension. Further information on the relevant factors can be found by searching 'QC 18383' on ato.gov.au

Relevant facts and circumstances: You were the unitholders in a related Unit Trust, The trust purchased a commercial property in 20XX and rented the premises to another related entity, until date of sale in 20XX. The capital gain on the sale of this property was calculated and distributed to you as unit holders of the trust. You were unaware of the Small Business CGT Concessions and your previous accountant provided no advice regarding the Small Business CGT Concessions. Your income tax returns were lodged for the financial year in which the sale of the property occurred, without elections under the small business CGT concessions. Subsequently, you became aware of the small business CGT concessions.

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