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Edited version of private advice
Authorisation Number: 1051849986740
Date of advice: 9 June 2021
Ruling
Subject: Replacement asset rollover - compulsory acquisition
Question
Will the Commissioner exercise his discretion under paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 to allow an extension of time to XX/XX/XXXX for you 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. Given the protracted legal proceedings and the nature of the asset to be replaced the Commissioner will allow you until DDMMYY to acquire replacement asset(s) and so replace the CGT asset subject of the rollover.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 2020
Relevant facts and circumstances
The taxpayer acquired the property prior to 25 September 1985. The taxpayer used the land in their mixed farming business.
A government department compulsorily acquired part of the property on XX/XX/XXXX.
There were protracted negotiations between the taxpayer and the government department as to the final settlement amount to be paid which meant that the taxpayer did not receive the final settlement amount until XX/XX/XXXX, outside of period in which they could obtain a replacement asset rollover.
The taxpayer was prevented from acquiring a replacement asset prior to the final settlement date as they did not have the monies available to purchase one.
The taxpayer continues to search for a replacement asset however due to the current market conditions in their state, they have been unable to do so.
The taxpayer has requested the Commissioner to grant an extension of time to XX/XX/XXXX in which to acquire a replacement asset(s).
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 Subdivision 124-B
Income Tax Assessment Act 1997 section 124-70
Income Tax Assessment Act 1997 section 124-75