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Edited version of private advice
Authorisation Number: 1051834679638
Date of advice: 27 May 2021
Ruling
Subject: Extension of time for the replacement asset period
Question
Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to DD MM YYYY?
Answer
Yes. Having considered the relevant facts, the Commissioner will apply the discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYY for the asset to purchase a replacement asset.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
You sold a small business.
You identified a potential replacement asset and engaged an accountant and business advisory firm to provide a valuation.
A valuation was provided however you did not proceed with the acquisition.
COVID-19 restricted your ability to travel and diminished the market for business acquisition.
You identified another potential replacement asset and engaged accountant and business advisory firm to provide a valuation.
A valuation was provided however you decided not to proceed as you considered the asking price too high.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190