Private ruling: Small business replacement asset - extension of time
Date of advice: 12 March 2021
Published: May 2021
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the Commissioner use his discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 in respect of the Small Business CGT replacement asset rollover relief? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period to XXXX.

Relevant facts and circumstances: A company was founded by shareholders. In 20XX, you and the other shareholders sold their respective shares. CGT event A1 occurred in relation to the sale of shares in the company which was carrying on a business. You elected to use the replacement asset roll-over of the small business Capital Gains Tax concessions in your XXXX income tax return. Your intention has always been to acquire a replacement asset within the two year timeframe under the replacement asset provisions and have experience issues with acquiring a replacement asset. You will acquire a replacement asset within the next six months or convert assets already acquired into active assets.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)