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1 Will the Commissioner extend the time limit in paragraph 152-125(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to 30 June 20YY in accordance with subsection 152-125(4) of the ITAA 1997, for payment of the exempt amount to the capital gains tax (CGT) concession holder?

Yes. In this case we accept that the delays because of access issues and modifications to the subdivision development consent delayed the contract settlement and the receipt of funds from the sale of the Property. Therefore, the Commissioner will apply subsection 152-125(4) of the ITAA 1997 and allow an extension of time to make the payment of the exempt amount to its CGT concession holders under subparagraph 152-125(1)(b) till 30 June 20YY. This ruling applies for the following periods : Year ending 30 June 20YY Year ending 30 June 20YY The scheme commenced on: 1 July 20YY

The Company acquired the Property pre-CGT and used it to operate its business for over 15 years until the Property was sold. Individual A and Individual B have each continuously owned 50% of the ordinary shares in the Company for over 15 years. A subdivision application was lodged with the local council. There were several delays in the application process regarding access issues with the Lands Department. The Company received a consent to operate from the council 10 years after the subdivision application was lodged. Further delays were incurred with 2 separate modifications of the development consent was issued to the local council. The Company entered into a contract for sale with an unrelated entity for a portion of the Property. The contract included conditions that were to be satisfied precedent to the completion of the contract. These conditions included the Company was responsible for the subdivision of the Property into two lots: •                     A small parcel of land which included a Residence (Lot D); and •                     The residue of the Property (the Farmland).

Lot D was to be retained by the Company. The Farmland was to be sold to the purchaser under the terms of sale contract. Both Individual A and Individual B were over the age of 55 at the time of the CGT event. When the contract was signed, Individual B ceased working on the Property and the Purchaser took over all maintenance and farmed their own cattle free from rent on the Property. Individual B fully retired from their employment a year after the contract was signed and 2 years prior to settlement of the contract. Individual A fully retired from their employment 2 years after the contract was signed and 1 year prior to settlement of the contract. On X February 20XX the subdivision was approved and registered with State 1 Land Registry Services. Following the registration of the individual lots, the sale contract was completed, with settlement occurring on XX February 20XX. The Company continues to hold the net proceeds from the sale of the Farmland. The market value of assets owned by the Company, its connected entities and affiliates was less than $6 million at the time of the CGT event.

The Company was carrying on a business in income year the Property was sold, with an aggregated turnover of less than $2 million.

Income Tax Assessment Act 1997 section 152-10 Income Tax Assessment Act 1997 section 152-110 Income Tax Assessment Act 1997 subsection 152-125(1) Income Tax Assessment Act 1997 paragraph 152-125(1)(b) Income Tax Assessment Act 1997 subsection 152-125(2) Income Tax Assessment Act 1997 subsection 152-125(4)