Private ruling: CGT - extension of time to acquire rollover replacement assets
Date of advice: 29 March 2021
Published: May 2021
Ruling period: Income year ended 30 June 20AA | Income year ended 30 June 20BB | Income year ended 30 June 20CC
Date scheme commenced: DDMMYY

Ruling: Q1: Will the Commissioner exercise his discretion under paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 (ITAA 1997)to allow an extension of time, until 30 June 20XX, for you to acquire replacement assets? | A1: Yes. The Commissioner will exercise his discretion under paragraph 124-75(3)(b) of the ITAA 1997 to allow the partnership until 30 June 20XX to replace the compulsory acquired assets. Further information on the CGT treatment of Involuntary Disposal of CGT assets can be found on our website: ato.gov.au by searching quick code QC17204.

Relevant facts and circumstances: You are an entity which had its assets compulsorily acquired in the 20ZZ financial year. You wish to apply the CGT rollover provisions to the disposal of these assets. You have actively looked for suitable replacement assets since late 20ZZ. Due to the impact of Covid-19, finding suitable replacement assets has been extremely difficult, if not impossible, during this time.

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