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Edited version of private advice
Authorisation Number: 1052014666427
Date of advice: 1 August 2022
Ruling
Subject: CGT - replacement asset
Question
Will the Commissioner exercise the discretion under subsection 152-10(5) ofthe Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to X December 20XX?
Answer
Yes. Having considered the relevant facts, including the delay in negotiations with prospective business partners due to Covid-19 pandemic restrictions, the Commissioner has applied the discretion and will extend the replacement asset period to X December 20XX.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
X March 20XX
Relevant facts and circumstances
You made a capital gains tax (CGT) gain in the year ending June 20XX.
The elected to apply the CGT small business roll-over concession to the CGT gain.
Your 2 year period to acquire a replacement asset ceased on X March 20XX.
You are currently in negotiations with prospective partners to use the capital gain to purchase shares to form a new business.
Meetings with the prospective partners have been delayed due to the Covid-19 pandemic restrictions.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10(5)
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