Private ruling: Subdivision 124-B - replacement asset roll-over relief
Date of advice: 12 August 2020
Published: September 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 124-75(3)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow the taxpayers additional time until XX/XX/XXXX to acquire a replacement asset? | A1: Yes. After consideration of the relevant factors, the Commissioner has concluded that special circumstances exist to warrant the exercise of his discretion and allow an extension of time to obtain a replacement asset.

Relevant facts and circumstances: The taxpayers were joint owners of a property used for income producing purposes. The property was compulsorily acquired by the State government. The taxpayers intended to apply the rollover in subdivision 124-B of the ITAA 1997 on the basis that they were going to acquire a qualifying replacement asset. The compulsory acquisition occurred on XX/XX/XXXX; however, no compensation was received until XX/XX/XXXX. Also, the taxpayers were affected by an extraordinary event outside of their control and as a result, were not able to acquire a replacement asset within the allowable time period.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 124-B | Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Section 124-70 | Income Tax Assessment Act 1997 Section 124-75