Private ruling: Capital gains tax - small business concessions - replacement asset
Date of advice: 15 August 2019
Published: October 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to extend the time period to acquire a replacement asset pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 to 30 June 2020? | A1: Yes. After considering the relevant factors and circumstances the Commissioner considers that it is reasonable to extend the time period to acquire a replacement asset until 30 June 2020.

Relevant facts and circumstances: The Company is a private company. The Company operated a small business until XX July 20XX. The business was sold which resulted in a capital gain of $XXX. The Company applied the small business rollover relief to $XXX of the capital gain. The Company has attempted to purchase a replacement asset however has experienced various delays. The Company made an offer to purchase a business however the seller declined the offer and the business was subsequently taken off the market. The Company is currently in negotiations with 2 potential businesses that the Company could acquire as a replacement asset. The Company was a small business entity in the 20XX financial year. The Company had CGT concessions stakeholders at the time of the CGT event.

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