Private ruling: CGT - small business rollover
Date of advice: 17 July 2019
Published: September 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion available under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to provide you with an extension of time until 31 December 20XX to acquire a replacement asset for the business that you previously owned? | A1: Yes. Having considered the relevant facts, the Commissioner is able to apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension to the replacement asset period until 31 December 20XX. Allowing an extension is not prejudicial to the Commissioner in this case nor is it unfair to other people in similar positions.

Relevant facts and circumstances: The Trust sold the goodwill of Business A. At this time, the Trust utilised the SBE Active asset concessions in relation to capital gains tax (CGT). The Trust has the intention and agreement to buy into a similar business, Business B, the 2 year roll over relief period. Business A and Business B are not associated with each other. However, you are contracted to work for Business B. Business B currently has a shareholders' agreement in place which prevents any shares in the business being sold before late 20XX. You have requested the rollover period to be extended until 31 December 20XX to allow the Trust to purchase the shares in Business B without paying CGT.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 124-75(3)(b).