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Edited version of private advice
Authorisation Number: 1052143211609
Date of advice: 4 August 2023
Ruling
Subject: CGT - replacement asset rollover relief - extension of time
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?
Answer
Yes.
The Commissioner will provide an extension the time until 31 December 2023 for the Trust to acquire a replacement asset. Having considered the reasons for the delays in acquiring the replacement, the Commissioner will provide further time pursuant to subsection 104-190(2) of the ITAA 1997 for the Trust to acquire a replacement asset.
This ruling applies for the following periods:
Year ending 30 June 2022
Year ending 30 June 2023
Year ending 30 June 2024
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
You sold your asset in the financial year ending 30 June 2020, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997.
Restrictions related to the COVID-19 pandemic in addition to other specific issues related to your proposed business activity hindered your plans to acquire a replacement asset within the replacement period.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)
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