Private ruling: Record keeping for CGT purposes
Date of advice: 30 November 2017
Published: April 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Do you satisfy the requirements of section 121-35 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has determined that the asset register would be adequate to use for record keeping purposes for the asset as per section 121-35 of the ITAA 1997. Further information on record keeping for capital gains tax purposes can be found on our website ato.gov.au and entering Quick Code QCQC 22151 into the search bar at the top of the page.

Relevant facts and circumstances: You purchased a commercial building (the property) after 20 September 1985. The land the building was on is Crown lease land. In the year ended 30 June 20XX the lease ended and you sold the property. Since purchasing the property you have changed tax agents multiple times. In attempting to calculate your capital gain or loss upon the sale of the building you have discovered that some records needed to calculate your cost base are missing or destroyed. As you kept all of your documents in your basement of your residence, due to a natural disaster that affected your area in 20AA they were likely destroyed or discarded. You have been successful in recreating some of the lost records but not all of them. You have an asset register which lists all capital costs associated with the building. This register was created and maintained by your previous tax agents. The register was created and maintained through the accounting software used by your current and previous tax agents. Your original tax agent has said that they believe they had returned all of your documents to you in 19ZZ after they had used them to create the asset register.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 121-35