Private ruling: Extension of time for the replacement asset period
Date of advice: 27 May 2021
Published: August 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 to DD MM YYYY? | A1: Yes. Having considered the relevant facts, the Commissioner will apply the discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYY for the asset to purchase a replacement asset.

Relevant facts and circumstances: You sold a small business. You identified a potential replacement asset and engaged an accountant and business advisory firm to provide a valuation. A valuation was provided however you did not proceed with the acquisition. COVID-19 restricted your ability to travel and diminished the market for business acquisition. You identified another potential replacement asset and engaged accountant and business advisory firm to provide a valuation. A valuation was provided however you decided not to proceed as you considered the asking price too high.

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