Private ruling: Small business concessions
Date of advice: 21 April 2021
Published: June 2021
Ruling period: Year ended DD MM YYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period? | A1: Yes.Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to purchase a replacement asset.

Relevant facts and circumstances: Company x sold a medical practice. Company x made a capital gain from the sale of the business. Company x elected to apply the rollover in Subdivision 152-E of the ITAA 1997 The director of the company had a medical condition which delayed the acquisition of a replacement asset. There was a legal dispute that also delayed the acquisition of a replacement asset. Company x located two potential businesses to purchase and are near completion on negotiations.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190(2)