Edited version of private advice

Authorisation Number: 1051847237591

Date of advice: 14 June 2021

Ruling

Subject: An extension of the replacement asset period to apply the small business roll-over concession for a CGT event

Question

Will the Commissioner exercise his discretion to further extend the replacement asset period under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to DD MM YYYY?

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 limit to DD MM YYYY.

The Commissioner notes that COVID-19 pandemic and its effect on small business and the wider economy was the main reason for applying the discretion in this instance. If COVID-19 was not present, then it is unlikely the discretion would have been exercised.

This ruling applies for the following periods:

DD MM YYYY

The scheme commences on:

DD MM YYYY

Relevant facts and circumstances

You owned an outdoor advertising business.

You sold your business and the assets used, to an unrelated third party.

You satisfied the basic conditions for CGT Relief under section 152-10 of the ITAA 1997 and have elected to apply the Small Business Roll-Over Concession in Subdivision 152-E of the ITAA 1997.

On three separate occasions, you applied for an extension of the replacement asset period to apply the Small Business Roll-Over Concession and on three separate occasions you were granted an extension.

You have stated that the current conditions caused by COVID-19 is unprecedented and have resulted in significant disruption to all industries, including the industry in which you operate.

You and your affiliate have identified a number of replacement assets and have stated that there have been several delays in the acquisition process.

Relevant legislative provisions

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