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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your private ruling

Authorisation Number: 1012546274162

Ruling

Subject: CGT - Small business concessions - Asset replacement period

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?

Answer

Yes.

This ruling applies for the following period :

Year ending 30 June 2014

Year ending 30 June 2015

The scheme commences on:

1 July 2013

Relevant facts and circumstances

You disposed of an interest in a CGT asset and incurred a capital gain on disposal.

Your intention is to acquire a replacement asset.

You have not been successful in your search for a replacement asset to date. This has been due to a lack of suitable properties coming on to the market.

You have requested a 12 month extension to the replacement asset period.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 104-190(2).

Reasons for decision

Where a taxpayer elects to take advantage of the small business rollover, there are rollover conditions that must be satisfied by the end of the replacement asset period. This period starts one year before and ends two years after the last CGT event that occurs in the income year for which you choose the rollover. However the Commissioner may extend the replacement asset period in certain circumstances (subsection 104-190(2) of the Income Tax Assessment Act 1997).

The relevant factors in determining whether to extend the replacement asset period are:

    · there should be evidence of an acceptable explanation for the period of extension requested and that it would be fair and equitable in the circumstances to provide such an extension

    · account must be had to any prejudice to the Commissioner which may result from the additional time being allowed, however the mere absence of prejudice is not enough to justify the granting of an extension

    · account must be had of any unsettling of people, other than the Commissioner, or of established practices

    · there must be a consideration of fairness to people in like positions and the wider public interest

    · whether there is any mischief involved

    · a consideration of the consequences.

You rolled over a capital gain under the small business rollover for a CGT event. You have been searching for a suitable replacement asset; however there has been a lack of suitable properties coming onto the market. We consider that you have made ongoing efforts to acquire a replacement asset.

Having considered the relevant factors above, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period.


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