Private ruling: Income tax - capital gains tax - small business concessions - extension of time
Date of advice: 10 September 2020
Published: October 2020
Ruling period: Year ending 30 June 2021
Date scheme commenced: 28 September 2020

Ruling: Q1: Will the Commissioner of Taxation extend the 2 year replacement period provided in subparagraph 104-190(1A)(b)(i) of the Income Tax Assessment Act 1997 (ITAA 1997) in accordance with subsection 104-190(2) of the ITAA 1997 until XX June 20XX? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period to XX June 20XX. Further information can be found by searching 'QC 52291' on ato.gov.au

Relevant facts and circumstances: The Trust had a net capital gain of $XX as a result of a capital gains event occurring on XXXX. The Trust applied the small business CGT concessions to the contained in subdivision 152-E to roll-over the capital gain. In 20XX a family member of the director of the trustee company unexpectedly passed away. In 20XX COVID-19 has impacted the ability of the Trust to purchase a replacement asset. The Trust has explored opportunities to acquire replacement assets including XYZ business however this opportunity fell through. At present the trust is in verbal negotiations to acquire an interest in a business and is hoping that they can reach an agreement later this year with settlement to occur next year.

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