Private ruling: Commissioner’s discretion
Date of advice: 6 September 2018
Published: October 2018
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner apply his discretion under subsection 152-125(4) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two year time period set out in paragraph 152-125(1)(b) of the ITAA 1997? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information can be found by searching 'QC 52288' on ato.gov.au

Relevant facts and circumstances: You previously applied for a private ruling asking whether you are eligible for the 15-year exemption in relation to the sale of a property. The distribution of the exempt amount is to be paid to the estate of the significant individual. After you received confirmation that you could use the 15-year exemption, the executor of the estate needed to confer with all beneficiaries of the estate to reach an agreement about what action would be taken. As there are a number beneficiaries named in the will all residing in different locations, it has been time consuming and difficult to organise confirmation of the capital gain disbursement. Settlement of the property did not occur until approximately 18 months after the date of contract. The disbursement of the exempt amount may not be able to be made until after two years after the contract date due to the delays you have incurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-110 | Income Tax Assessment Act 1997 subsection 152-125(1) | Income Tax Assessment Act 1997 subsection 152-125(4)