| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052075134266
Date of advice: 12 January 2023
Ruling
Subject: CGT small business concessions
Question
Will the commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period?
Answer
Yes, taking into consideration your relevant circumstances, including your intention to acquire a replacement asset and the legal complications delaying the acquisition, the Commissioner will allow an extension of time.
This ruling applies for the following periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
This private ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are different from these facts, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You made a capital gain from the sale of a property.
You chose to apply a small business roll-over under Subdivision 152-E of the ITAA 1997 to the capital gain, intending to acquire a replacement asset.
A draft contract for another property was prepared within the replacement asset period.
The seller was not legally able to enter into a contract until certain structural improvements required to satisfy third party statutory body requirements were made to the property. These were delayed due to the impacts of COVID-19 and legal complications.
The contract was signed 6 months after the end of the replacement asset period.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)
Income Tax Assessment Act 1997 Subdivision 152-E