Private ruling: capital gains tax- small business concessions – extension of time
Date of advice: 25 January 2018
Published: June 2018
Ruling period: 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997), further extend the time limit set for your replacement asset to be acquired? | A1: Yes . An extension of time has been granted to XXXX Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of time. Further information on the relevant factors and the CGT rollover can be found on our website ato.gov.au by entering Quick Code QC52291into the search bar at the top right of the page.

Relevant facts and circumstances: You disposed of a CGT asset in 20XX. From January 20XX onwards you have been actively looking for a replacement asset by pursuing business opportunities in franchising; take away stores; health centre and an option of subdividing property in the surrounding areas to where you live. You have met with local real estate offices to assist you investigating available businesses and from this you have met with owners to discuss their return on investment and these opportunities have fallen through. You have put offers forward and these too have fallen through either as higher offers were above yours or your offer was undercut and lost the deal. You negotiated with a business for three months and this fell through. Your financial advisor assists you by reviewing the businesses you are pursuing. Presently you have received financial records for X other business opportunities and you are in the due diligence phase on each business.

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