Private ruling: An extension of the replacement asset period to apply the small business roll-over concession for a CGT event
Date of advice: 14 June 2021
Published: August 2021
Ruling period: DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion to further extend the replacement asset period under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to DD MM YYYY? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time limit to DD MM YYYY. The Commissioner notes that COVID-19 pandemic and its effect on small business and the wider economy was the main reason for applying the discretion in this instance. If COVID-19 was not present, then it is unlikely the discretion would have been exercised.

Relevant facts and circumstances: You owned an outdoor advertising business. You sold your business and the assets used, to an unrelated third party. You satisfied the basic conditions for CGT Relief under section 152-10 of the ITAA 1997 and have elected to apply the Small Business Roll-Over Concession in Subdivision 152-E of the ITAA 1997. On three separate occasions, you applied for an extension of the replacement asset period to apply the Small Business Roll-Over Concession and on three separate occasions you were granted an extension. You have stated that the current conditions caused by COVID-19 is unprecedented and have resulted in significant disruption to all industries, including the industry in which you operate. You and your affiliate have identified a number of replacement assets and have stated that there have been several delays in the acquisition process.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)