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Edited version of private advice
Authorisation Number: 1052209789495
Date of advice: 10 January 2024
Ruling
Subject: Capital gains tax - small business concessions - extension of time
Question
Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to MM 20XX?
Answer
Yes.The Commissioner will exercise the discretion under subsection 104-190(2) of the ITAA 1997 to extend the period for acquiring your replacement asset to MM 20XX. After considering the relevant facts, the Commissioner considers that:
• the negotiation process for the replacement asset commenced within the replacement asset period
• the replacement asset will be acquired within a short period outside the replacement asset period
• the delay in the acquisition of the replacement asset was beyond your control.
This ruling applies for the following period
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You sold your business in MM 20YY.
You chose to apply the Capital Gains Tax (CGT) Small Business Rollover to the capital gain from the disposal of your business.
You found it challenging to find and secure a replacement asset within the replacement asset period due to COVID-19 restrictions.
You entered into an agreement in MM 20YY to acquire a new business.
The settlement date for the acquisition of the new business is expected to be late MM 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-410
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 104-190
Income Tax Assessment Act 1997 section 104-197
Further issues for you to consider:
We have limited our private ruling to the questions raised in your application. This ruling has not considered your eligibility for the CGT small business concessions. You should ensure that you satisfy the relevant conditions to apply the concessions. Further information on the CGT small business concessions can be found by searching 'QC 22655' on ato.gov.au