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Edited version of private advice
Authorisation Number: 1051732704583
Date of advice: 12 August 2020
Ruling
Subject: Subdivision 124-B - replacement asset roll-over relief
Question
Will the Commissioner exercise his discretion under section 124-75(3)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow the taxpayers additional time until XX/XX/XXXX to acquire a replacement asset?
Answer
Yes. After consideration of the relevant factors, the Commissioner has concluded that special circumstances exist to warrant the exercise of his discretion and allow an extension of time to obtain a replacement asset.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The taxpayers were joint owners of a property used for income producing purposes.
The property was compulsorily acquired by the State government.
The taxpayers intended to apply the rollover in subdivision 124-B of the ITAA 1997 on the basis that they were going to acquire a qualifying replacement asset.
The compulsory acquisition occurred on XX/XX/XXXX; however, no compensation was received until XX/XX/XXXX.
Also, the taxpayers were affected by an extraordinary event outside of their control and as a result, were not able to acquire a replacement asset within the allowable time period.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 124-B
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 124-70
Income Tax Assessment Act 1997 Section 124-75
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