Private ruling: Capital gains tax
Date of advice: 28 September 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to xxxx? | A1: Yes. Having regard to your full circumstances, the Commissioner considers it would be fair and equitable for the purposes of section 104-190(2) of the ITAA 1997 to extend the replacement asset period to xxxx and allow the small business roll-over under Subdivision 152-E of the ITAA 1997. Further information on the small business rollover can be found on by searching 'QC52291' on ato.gov.au.


Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 103-25 | Income Tax Assessment Act 1997 section 104-185 | Income Tax Assessment Act 1997 section 104-190 | Income Tax Assessment Act 1997 section 104-197


Relevant facts: On xxxx, a capital gains tax (CGT) event occurred in relation to the sale of a business by entity A. | The election was made under the small business relief rules to use of the 50% general discount, 50% active asset reduction and the balance of the capital gain would be rolled into a replacement asset. | During the past XX years there has been every intention to purchase another active asset. The final negotiations are currently taking place in relation to the price of the purchase. | Entity A has been in discussions for some time in relation to the purchase. However, the contract was not signed before the XX year period. | Unfortunately the seller has not moved quickly. | The necessary steps have already been taken by entity A in relation to finance ready to complete the loan as soon as the contract is signed. The asset is worth $xxxx which is more than adequate to cover the CGT rollover amount. | Entity A requests an extension of time to allow the relevant matters to be finalised and the purchase of the active asset. COVID-19 has also effected the timeliness of the transaction and the ability for all parties to transact as quickly as possible in 'normal' circumstances.