Private ruling: Roll-over asset extension of time
Date of advice: 13 July 2017
Published: November 2017
Ruling period: Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2011

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 124-75(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to provide an extension of time to acquire a rollover replacement asset? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 124-75(3) of the ITAA 1997 and allow an extension of time until the 2017-18 financial year. Further information on receiving money from an involuntary disposal of a CGT asset can be found on our website ato.gov.au and entering Quick Code QC17204 into the search bar at the top right of the page.

Relevant facts and circumstances: You operated a business in leased premises. The premises were leased from a city council under a XX year lease term. In the 2011-12 financial year the premises was compulsorily acquired by the State Government. At the time of the compulsory acquisition there was approximately XX years remaining on the lease. In 20XX an interim payment was made to you from the State Government. You lodged a claim for compensation soon after. In late 20YY your claim for compensation was denied. In 20ZZ you lodged an application to have the decision reviewed. There was mediation between you and the State Government and a trial was set to commence in early 20AA and a settlement was reached. The payment was due by mid 20AA.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-10(6) | Income Tax Assessment Act 1997 section 124-70 | Income Tax Assessment Act 1997 section 124-75 | Income Tax Assessment Act 1997 subsection 995-1(1)