Private ruling: Income tax - capital gains tax - small business concessions
Date of advice: 21 December 2020
Published: February 2021
Ruling period: Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period in respect of the small business capital gains tax (CGT) replacement asset roll-over relief? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion and allow an extension of time until 30 June 20XX. Further information on the relevant factors of small business CGT Rollover generally can be found on our website ato.gov.au and entering Quick Code QC52291 into the search bar at the top right of the page. Note: We have limited our ruling to the question raised in your application being whether an extension of time will be granted. You advised that the entity is entitled to the small business CGT concessions. The private ruling on whether an extension of time will be granted was issued on this basis, that is, the Commissioner did not consider whether the entity was in fact entitled to the small business CGT concessions. More information about the concessions can be found by searching 'QC 22165' on ato.gov.au

Relevant facts and circumstances: During the 2018 financial year, the taxpayer had a capital gain on an asset previously used in its business. The taxpayer decided to apply the small business CGT concessions including the two year rollover. Since the gain occurred the taxpayer has been looking for opportunities to apply the rollover and purchase a new business asset, however a suitable option did not present itself. Over the last month the taxpayer has come across an opportunity that they would like to invest in a new business

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