Private ruling: Capital gains tax
Published: May 2012
Ruling period: Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013
Date scheme commenced: 1 December 2008

Ruling: Q1: Will the Commissioner, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997), extend the time limit set out in paragraph 104-185(1)(a) of the ITAA 1997 for the replacement asset to be acquired? | A1: Yes.

Relevant facts and circumstances: The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are: · the application for private ruling, and · the documents provided with the application for private ruling. The trust purchased a business in 2003. This business was sold in 2008. The directors of the trustee company moved to another city. They immediately commenced looking for a business to acquire in the new city. Various businesses have been contacted with a view to purchase. These businesses have been considered unsuitable purchases for the trust.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-185(a) and | Income Tax Assessment Act 1997 section 104-190(2).

Reasons for decision: Summary: According to the Advance guide to capital gains tax concessions for small business 2010-11 , the small business rollover concession allows an entity to defer a capital gain made from a CGT event if the entity acquires a replacement asset and one or more conditions are satisfied. One of these conditions requires the entity to acquire a replacement asset within a period starting one year before, and ending two years after the date of disposal of the original asset. However, in appropriate circumstances, the Commissioner may extend this period. The abovementioned guide also provides the relevant considerations applied by the Commissioner to extend the two year period. Having regards to your full circumstances and the above principles, the Commissioner will allow an extension of time. Additional information This ruling has not considered your eligibility for the small business rollover concession. You should ensure that you satisfy the basic conditions and the other conditions relevant for the concession. More information is available in the publication Advanced guide to capital gains tax concessions for small business 2010-11 (NAT 3359), which is available on our website www.ato.gov.au.

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