Private ruling: Income tax - extension of time to make a choice
Date of advice: 5 December 2019
Published: February 2020
Ruling period: Year ending 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 103-25(1)(b) of the Income Tax Assessment Act 1997 to grant an extension of time until XX December 20XX to allow the taxpayers to make a choice to apply the CGT small business concessions to the sale of the property? | A1: Yes. After considering the relevant circumstances and factors the Commissioner considers it appropriate to grant an extension of time to allow you to make a choice to apply the small business CGT concessions. There would be no prejudice to the Commissioner or unsettling of people by allowing the extension. There is no mischief involved. The Commissioner considers it fair and equitable in these circumstances to exercise the discretion.

Relevant facts and circumstances: The taxpayers owned a property. The property was used for more than 15 years in a business which the taxpayers operated in partnership. On XX November 20XX the taxpayers entered into a Contract of Sale to dispose of the property with a delayed settlement. The taxpayers are eligible to apply the CGT small business concessions and meet the basic conditions. The taxpayers have not included a capital gain in their 20XX income tax return and will lodge an amendment to record the capital gains tax event now that settlement has occurred. The taxpayers intend to apply the small business concessions to reduce their capital gain.

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