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Edited version of private advice
Authorisation Number: 1051584908311
Date of advice: 30 September 2019
Ruling
Subject: Commissioner's discretion
Question 1
Will the Commissioner exercise his discretion available under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to provide an extension of time for you to elect to use the replacement asset roll-over until 30 June 20ZZ due to the Property being compulsorily acquired?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will exercise his discretion to grant an extension of time to make a choice to utilise the roll-over under subdivision 124-B of the ITAA 1997. Further information on making a choice can be found by searching 'QC18383' on ato.gov.au
Question 2
Will the Commissioner exercise his discretion available under paragraph 124-75(3) of the ITAA 1997 to provide an extension of time to 30 June 20ZZ to incur expenditure to acquire a replacement asset?
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 17204' on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20YY
Year ending 30 June 20ZZ
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your Property was used as a rental property until the property was resumed.
In the 20QQ income year the ABC issued you a Notice of Intention to resume in respect of your property.
The Taking of Land Notice was published in the Government Gazette during the 20XX income year.
In the 20XX income year, you made a claim of compensation for $XXX.
No subsequent agreement was achieved on this amount.
In the 20XX income year, the ABC made an advance on the claim to you for $XX.
Subsequently a letter was sent from your lawyer to the ABC regarding the compensation claim and the outstanding balance of the claim.
A deed of indemnity (the Deed) was drafted by ABC and was signed by you in the presence of a JP late in the 20YY income year. The ABC signed the Deed in and emailed it back to your lawyer. The final settlement balance of $XX was paid to you near the end of the 20YY income year.
You are XX years old.
You are having issues organising financing for purchasing a new investment property due to your age.
You did not know about the replacement asset roll-over until you approached your new tax agent. They applied for a ruling to extend the time to make a choice about the replacement asset roll-over and to purchase a new asset.
You lodged your 20XX income tax return without making a choice in relation to the roll-over.
Relevant legislative provisions
Income Tax Assessment Act 1997 Paragraph 103-25(1)(b)
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 124-70
Income Tax Assessment Act 1997 Section 124-75
Income Tax Assessment Act 1997 Section 995-1