Private ruling: Commissioner's discretion - replacement asset rollover relief
Date of advice: 15 May 2023
Published: 3 July 2023
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset by 12 months? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period.

Relevant facts and circumstances: You sold your Business in the financial year ending 30 June 20XX, resulting in a capital gains tax (CGT) event. You applied the capital gains tax (CGT) small business roll-over in Subdivision 152-E to the gain from the sale. COVID-19 impacts delayed the settlement of the sale. You have entered discussions/negotiations in relation to the purchase of a number of businesses, however no agreements have been reached on the grounds of either: • The business did not pass due diligence. • You were unable to obtain sufficient finance. • The business did not pass due diligence. You continue to actively pursue the purchase of a replacement asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190 | Income Tax Assessment Act 1997 Subdivision 152-E