Private ruling: CGT - small business concessions - replacement asset extension of time
Date of advice: 7 October 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 5 September 20XX

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 your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information can be found by searching 'QC 52291' on ato.gov.au Additional information We have limited our ruling to the question raised in your application being whether an extension of time will be granted. The Commissioner has not considered your edibility for the small business CGT concessions in this ruling. You should ensure that you satisfy the basic conditions and any other relevant conditions.

Relevant facts and circumstances: You reported a capital gain event in your 20XX tax return electing to roll over the capital gain on disposal. The gain was realised from the disposal of an asset, providing you with a two year period to acquire a replacement asset. You have actively been involved in primary production business activities. You have been actively searching for a replacement active asset with a plan to purchase shares in a company who will operate a business. The company, which you intend investing in, will satisfy the active asset requirement, with the total market value of the active assets of the company expected to be 100% or at least 80% of the total market value of all the assets of the company.

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