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Edited version of private advice
Authorisation Number: 1052158890054
Date of advice: 21 August 2023
Ruling
Subject: CGT- small business concessions - rollover relief
Question
Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to 30 June 20XX?
Answer
Having considered the relevant factors and your specific circumstances the Commissioner will exercise his discretion under subsection 104-190(2) of the ITAA 1997 to extend the replacement asset period.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
DDMMYYYY
Relevant facts and circumstances
The original CGT event occurred on the DDMM 20XX, and after applying the 50% general discount and active asset reduction, a taxable gain was remaining to which the small business rollover was applied.
Since then, the client was affected by a number of significant events relating to the farming enterprise including flooding and the COVID pandemic.
COVID has affected the taxpayers in a number of ways including ill health.
For over a year the taxpayer has been suffering from long COVID.
These circumstances have ultimately made acquiring a replacement asset within the two-year period impossible.
It is only of the last couple months the taxpayer has been able to attend other business matters including looking at a number of replacement assets including property and other assets.
On these grounds our client would like to apply on compassionate grounds for an extension of the two year period or which to acquire a replacement asset under the small business rollover concession.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 124-75(3)(b)
Income Tax Assessment Act 1997 subsection 104-190(2)
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