Edited version of private advice

Authorisation Number: 1051809682250

Date of advice: 26 February 2021

Ruling

Subject: Extension of time to purchase a replacement asset for the small business CGT concession

Question

Will the Commissioner exercise the discretion under section 104-190(2) of the Income Tax

Assessment Act 1997 (ITAA 1997)to extend the replacement asset period in respect of the small business CGT replacement asset roll-over relief?

Answer

Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to purchase a replacement asset.

This ruling applies for the following periods:

Year ended DD MM YYY

The scheme commences on:

DD MM YYYY

Relevant facts and circumstances

You owned a small business.

You sold a small business.

You made a capital gain from the sale of the small business.

It took an extended period to confirm that you were eligible to apply the small business CGT concessions.

You applied for a Private Ruling through the ATO, requesting the Commissioner exercise his discretion under section 104-190(2).

You received a Private Ruling from the ATO, granting your request.

You had acquired a potential replacement assert however the sale fell through due to legal issues which could not be resolved with the vendor.

You identified an opportunity to invest in a replacement asset. Unfortunately, this proposed transaction fell through due to various legal limitations.

The market for business acquisition had been severely affected due to the impacts of COVID-19.

You are continuing to explore several opportunities but are yet to identify another site for the proposed replacement asset.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-190