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Edited version of private advice
Authorisation Number: 1052117658818
Date of advice: 15 May 2023
Ruling
Subject: Commissioner's discretion - replacement asset rollover relief
Question
Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset by 12 months?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period.
This ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You sold your Business in the financial year ending 30 June 20XX, resulting in a capital gains tax (CGT) event.
You applied the capital gains tax (CGT) small business roll-over in Subdivision 152-E to the gain from the sale.
COVID-19 impacts delayed the settlement of the sale.
You have entered discussions/negotiations in relation to the purchase of a number of businesses, however no agreements have been reached on the grounds of either:
• The business did not pass due diligence.
• You were unable to obtain sufficient finance.
• The business did not pass due diligence.
You continue to actively pursue the purchase of a replacement asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
Income Tax Assessment Act 1997 Subdivision 152-E
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