| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051758779699
Date of advice: 22 September 2020
Ruling
Subject: Capital gains tax - small business concessions
Question
Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to xxxx?
Answer
Yes. Having regard to your full circumstances, the Commissioner considers it would be fair and equitable for the purposes of section 104-190(2) of the ITAA 1997 to extend the replacement asset period to xxxx and allow the small business roll-over under Subdivision 152-E of the ITAA 1997. Further information on the small business rollover can be found on by searching 'QC52291' on ato.gov.au.
This ruling applies for the following periods
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts
You disposed of an active asset on xxxx.
You applied the small business general capital gains tax (CGT) discount, active asset discount and the retirement exemption to the gain to produce a taxable gain of $xxx. You then applied the replacement asset rollover to this amount.
Due to circumstances outside your control you have been unable to acquire a replacement active asset within the replacement asset period.
You have extensive experience in relevant areas. You have been actively looking to purchase a replacement business over the past 24 months. You have been working together to purchase a business to meet the CGT rollover requirements.
You engaged entity A to assist in search of a business. You had weekly business planning meetings to discuss the market and possible opportunities. You investigated several businesses. You have also consulted various business advisors.
Due to current economic situation occurring with COVID-19 and social restrictions, the required timeframe to purchase a business has been extremely difficult to meet.
You satisfy the basic conditions in Subdivision 152-A of the ITAA 1997.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
