Private ruling: CGT - small business concessions
Date of advice: 22 June 2023
Published: 14 August 2023
Ruling period: Year ending 20 June 20XX
Date scheme commenced: 30 June 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to 30 June 20XX in respect of the small business roll-over in Subdivision 152-E of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. After taking into consideration your relevant circumstances, including being unable to find a suitable replacement asset or similar business and due diligence revealing that the financials did not indicate the business was a viable proposition due to COVID-19 impacts and difficulties, the Commissioner will allow an extension of time to 30 of June 20XX.

Relevant facts and circumstances: You sold a business in July 20XX and rolled over the capital gain under Subdivision 152-E of the ITAA 1997. You have been unable to find a suitable replacement asset or similar business of the similar quality as that of the one sold. Replacement assets to start a new business require licensing registration which has been hard to obtain in desired areas. When conducting due diligence, you found the financials didn't indicate that the business was a viable proposition. This was partly due to COVID-19 impacts and difficulties by business during that period. You are requesting an extension of time to 30 June 20XX regarding the Capital Gains Tax Rollover relief in relation to business sale in the financial year ended June 20XX.

Relevant legislative provisions: Subsection 104-190(2) of the Income Tax Assessment Act 1997 | Subdivision 152-E of the Income Tax Assessment Act 1997