Private ruling: Commissioner's Discretion
Date of advice: 5 June 2017
Published: September 2017
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

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 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 to make the choice to apply the small business concessions. More information on the small business concessions can be found in the publication Advanced guide to capital gains tax concessions for small business 2011-12 (NAT 3359).

Relevant facts and circumstances: In the 2012/13 income year you sold shares in a company. The share sale triggered CGT event A1. You applied the small business rollover to the remaining capital gain from the share sale. You did not purchase a replacement asset within two years of the share sale. Therefore, CGT event J5 was triggered for the financial year ended 30 June 2015. It was always the intention that you would utilise the retirement exemption in relation to the capital gain. One of your primary beneficiaries experienced health issues that impacted on your ability to focus on your taxation requirements. Due to their circumstances, you were not directed to choose to apply the retirement exemption by time of the lodgement of your tax return.

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