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Edited version of private advice
Authorisation Number: 1051959825367
Date of advice: 10 March 2022
Ruling
Subject: CGT small business concessions - extension of time for replacement asset
Question
Will the Commissioner use his discretion to extend the replacement asset period to XX XX 20XX pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 in respect of the Small Business CGT replacement asset rollover relief?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner will exercise his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of time until XX XX 20XX
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Taxpayer is a trust which operated a business on behalf of another entity until they purchased the business sometime later.
The director of the trust, (the Director) sustained an injury in some years prior which impacts their ability to perform physical activities on a regular basis.
The injury has resulted in on-going medical treatment, procedures and an operation for the injuries as evidenced by the medical documents provided.
As the injuries impacted the Directors ability to continue with the physical work the Trustees have been looking to replace the asset with a more manageable business activity.
The business continued to operate until it was sold.
The search for a replacement asset which entails less physical stress on the Director was undertaken while undergoing medical treatment and the two year period lapsed.
The Trust has since entered into a contract to purchase a replacement asset.
Assumptions
The entity meets the requirements for the CGT small business concessions as outlined in Income Tax Assessment Act 1997 subsection 152A
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)