Private ruling: CGT - extension of time to purchase a replacement asset
Date of advice: 4 May 2021
Published: July 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 his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYY to purchase a replacement asset.

Relevant facts and circumstances: You are primary producers. You owned an active asset (the property). On DD MM YYYY you sold the property and made a capital gain. You applied the 50% Active Asset Reduction and the Small Business Rollover Concession to the capital gain made, as you intend to continue your business. Since DD MM YYYY you have engaged an agricultural agency to assist you in acquiring a replacement asset. From DD MM YYYY to DD MM YYYY using an agricultural agency, you had identified and expressed your interest in two potential replacement assets however your offer/s were rejected. From DD MM YYYY to DD MM YYYY you were unable to identify a replacement asset as the acquisition market diminished and you were prevented from travelling across state boarders to explore the opportunity for acquisition due to COVID-19. Since DD MM YYYY you have identified a potential replacement asset and have expressed your interest however during this process, the vendor has been diagnosed with three debilitating health conditions which have and will continue to delay the acquisition process.

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