EV 1052195620645currentnon-binding advice

CGT - rollover relief

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

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?

2

Yes. Having regard to the particular circumstances of this case, the Commissioner has applied the discretion and will extend the replacement asset period. As a result of unavoidable delays relating to the purchase and construction of the premises from which the trust will conduct its business, not all of the replacement assets were held ready for use by the end of the rollover period. This is an acceptable explanation for the period of extension required. There would be no prejudice to the ATO by allowing the extension. There is no mischief involved. The Commissioner considers it fair and equitable in these circumstances for an extension to be allowed This ruling applies for the following periods : Year ending 30 June 2023 Year ending 30 June 2024 The scheme commenced on: 1 July 2022

3

The trust made a capital gain. The elected to apply the CGT small business roll-over concession to the CGT gain. The two-year period to acquire a replacement asset has passed. Various delays relating to the business premises have prevented the Trust from acquiring replacement assets.

4

Income Tax Assessment Act 1997 subsection 104-190(2)