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Edited version of private advice
Authorisation Number: 1051821787025
Date of advice: 29 March 2021
Ruling
Subject: CGT - extension of time to acquire rollover replacement assets
Question
Will the Commissioner exercise his discretion under paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 (ITAA 1997)to allow an extension of time, until 30 June 20XX, for you to acquire replacement assets?
Answer
Yes. The Commissioner will exercise his discretion under paragraph 124-75(3)(b) of the ITAA 1997 to allow the partnership until 30 June 20XX to replace the compulsory acquired assets.
Further information on the CGT treatment of Involuntary Disposal of CGT assets can be found on our website: ato.gov.au by searching quick code QC17204.
This ruling applies for the following periods:
Income year ended 30 June 20AA
Income year ended 30 June 20BB
Income year ended 30 June 20CC
The scheme commences on:
DDMMYY
Relevant facts and circumstances
You are an entity which had its assets compulsorily acquired in the 20ZZ financial year.
You wish to apply the CGT rollover provisions to the disposal of these assets.
You have actively looked for suitable replacement assets since late 20ZZ.
Due to the impact of Covid-19, finding suitable replacement assets has been extremely difficult, if not impossible, during this time.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Subdivision 124-B
Income Tax Assessment Act 1997 Section 124-70
Income Tax Assessment Act 1997 Section 124-75
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