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Edited version of private advice
Authorisation Number: 1051566461715
Date of advice: 15 August 2019
Ruling
Subject: Capital gains tax - small business concessions - replacement asset
Question
Will the Commissioner exercise the discretion to extend the time period to acquire a replacement asset pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 to 30 June 2020?
Answer
Yes. After considering the relevant factors and circumstances the Commissioner considers that it is reasonable to extend the time period to acquire a replacement asset until 30 June 2020.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Company is a private company.
The Company operated a small business until XX July 20XX.
The business was sold which resulted in a capital gain of $XXX.
The Company applied the small business rollover relief to $XXX of the capital gain.
The Company has attempted to purchase a replacement asset however has experienced various delays.
The Company made an offer to purchase a business however the seller declined the offer and the business was subsequently taken off the market.
The Company is currently in negotiations with 2 potential businesses that the Company could acquire as a replacement asset.
The Company was a small business entity in the 20XX financial year.
The Company had CGT concessions stakeholders at the time of the CGT event.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
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