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Edited version of private advice
Authorisation Number: 1051549974126
Date of advice: 18 July 2019
Ruling
Subject: Small business concessions
Question
Will the Commissioner extend the replacement asset period?
Answer
Yes
Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information can be found by searching 'QC 52291' on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You sold shares in a company.
At the date of the CGT event you satisfied the Maximum Net Asset Value test and Active Asset test to apply the small business entity 50% active asset concession and two year replacement asset roll over concession.
It came to light that the sale of the shares was not successful as the buyers started to voice that they no longer wanted the ownership of the entity and to sell their shareholdings.
The decision was made to buy-back the shares.
Having applied the replacement asset rollover, the intention was to apply this rollover against the re-purchase of the shares once negotiations were finalised.
Due to negotiations and mediation you were not able to re-purchase the shareholding within the replacement asset period.
You bought-back the shares outside of the replacement asset period.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190