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Edited version of private advice
Authorisation Number: 1052045523128
Date of advice: 13 October 2022
Ruling
Subject: CGT small business concessions - extension of time for replacement asset
Question
Will the Commissioner exercise the discretion to extend the replacement asset period until Day Month 20XX, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997), in respect of the small business roll-over in Subdivision 152-E of the ITAA 1997?
Answer
Yes.
Having regard to the circumstances including the COVID-19 travel restrictions and other personal circumstances, the Commissioner considers the extension would be fair and equitable. Further information on the small business rollover can be found on by searching 'QC 52291' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust is a small business entity.
The Trust owned a vessel which was used in the business.
This vessel sunk on Day Month 20XX. An insurance payout was received on Day Month 20XX.
The Trust chose to apply the small business roll-over and has been actively looking for a replacement asset.
The individual responsible for running the business resides in State BB and was prevented from going to State AA to meet with vessel dealers due to COVID-19 lockdowns and interstate travel restrictions.
During this same period, the individual was going through difficult personal circumstances which continue to cause delay in the Trust acquiring a replacement asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)