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Edited version of private advice
Authorisation Number: 1052024641525
Date of advice: 2 September 2022
Ruling
Subject: Small business CGT replacement asset rollover relief - extension of time
Question
Will the Commissioner exercise the discretion pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the small business capital gains tax (CGT) replacement asset period to DD/MM/YYYY?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the replacement asset period to DD/MM/YYYY.
This ruling applies for the following period:
Year ending 30 June 20YY
The scheme commenced on:
1 July 20YY
Relevant facts and circumstances
You had a CGT event during the 20YY financial year. The CGT event resulted in a capital gain which was rolled over under the small business roll-over.
You were in extended negotiations to acquire a replacement asset, but this has recently fallen through.
You have actively been searching for another replacement asset ever since. However, due to various circumstances outside your control such as the COVID-19 restrictions and limited suitable replacement assets within your district, it has taken longer than the two-year period to secure a replacement asset.
The Commissioner previously granted you an extension of time to acquire a replacement asset; however, you were unable to acquire a replacement asset during the extended timeframe due to other circumstances outside your control.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190