Private ruling: Income tax - CGT - small business concessions
Date of advice: 18 March 2021
Published: May 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997)to extend the replacement asset period? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion undersubsection 104-190(2) of the ITAA 1997 and allow an extension of the time for the asset to acquire a replacement asset.

Relevant facts and circumstances: You purchased a laundry business. You owned a laundry business for four years. You sold a laundry business. You made a net capital gain after applying the 50% general discount and the small business CGT concessions. At that time you intended to acquire a replacement asset within the two year timeframe to avoid triggering CGT event J5. You experienced a delay in purchasing a replacement asset due to economic and social impacts of impacts of COVID-19. You purchased a franchise.

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