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Edited version of private advice
Authorisation Number: 1051810344467
Date of advice: 18 March 2021
Ruling
Subject: Income tax - CGT - small business concessions
Question
Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997)to extend the replacement asset period?
Answer
Yes. Having considered the relevant facts, the Commissioner will apply his discretion undersubsection 104-190(2) of the ITAA 1997 and allow an extension of the time for the asset to acquire a replacement asset.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
You purchased a laundry business.
You owned a laundry business for four years.
You sold a laundry business.
You made a net capital gain after applying the 50% general discount and the small business CGT concessions. At that time you intended to acquire a replacement asset within the two year timeframe to avoid triggering CGT event J5.
You experienced a delay in purchasing a replacement asset due to economic and social impacts of impacts of COVID-19.
You purchased a franchise.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
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