Private ruling: Income tax - small business concessions
Date of advice: 12 February 2021
Published: April 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner grant XYZ and extension of time until February 20XX to acquire replacements assets? | A1: Yes. Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period to February 20XX. Further information can be found by searching 'QC 52291' on ato.gov.au | Q2: Is XYZ Ltd an eligible entity for the purpose of applying the lower corporate tax rate of 27.5% for the 20XX-20XX and 20XX-20XX income years? | A2: Yes. XYZ meets the requirements set out in section 23AA of the ITRA to be a base rate entity and consequently is eligible to be taxed at 27.5%.

Relevant facts and circumstances: XYZ is a small business entity and has been operating since 20XX. In 20XX you sold an active asset. You plan to acquire another replacement asset but have experienced delays due to COVID-19.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190 | Income Tax Rates Act 1986 section 23 | Income Tax Rates Act 1986 section 23AA | Income Tax Rates Act 1986 section 23AB