Private ruling: CGT - rollover relief
Date of advice: 4 October 2023
Published: 13 November 2023
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner of Taxation (Commissioner) allow you, pursuant to provision of section 103-25 of the Income Tax Assessment Act 1997 (ITAA 1997), further time to make a choice to obtain rollover relief under Section 122-15 of the ITAA? | A1: Yes. The general rule is that a choice available under the capital gains tax (CGT) provisions once made cannot be changed. Generally, such a choice must be made by the time you lodge your tax return or within such further time as the Commissioner allows. However, in your case, you were not aware that a choice to apply the small business rollover was available to you and as such you did not make a choice before lodging your tax return.

Relevant facts and circumstances: In 20xx, you transferred shares held in company A to solely owned company B. In exchange for the shares in company A you were issued with shares in company B. Your tax return for 2019 year of income was lodged without making the written choice available under section 103-25 of the ITAA to obtain rollover relief under section 122-15 of the ITAA 1997 in relation to the sale of the shares. The tax return was lodged in error by your tax agent. Your tax agent has now lodged an amended tax return for the 2019 year of income in which the written choice has been made.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 103-25 | Income Tax Assessment Act 1997 section 122-15