• Advice under development – capital gains tax issues

    We are developing advice and guidance on the following capital gains tax issues.

    [3802] Trust capital gains

    Title
    Draft Taxation Determination
    Income tax: is the source concept in Division 6 of Part III of the Income Tax Assessment Act 1936 (Division 6) relevant in determining whether a non-resident beneficiary of a resident trust (or trustee for them) is assessed on an amount of trust capital gain arising under Subdivision 115-C of the Income Tax Assessment Act 1997?

    Registered
    6 September 2016

    Purpose
    To clarify the taxation treatment of capital gains for a non-resident beneficiary or trustee of a resident trust.

    Expected completion
    To be advised

    Comments
    See also finalised consultation matter [201644]

    Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Taxation Determination.

    [3803] Capital gain from a non-resident beneficiary on a non-fixed trust

    Title
    Draft Taxation Determination
    Income tax: does Subdivision 855-A (or subsection 768-915(1)) of the Income Tax Assessment Act 1997 (ITAA 1997) disregard a capital gain that a foreign-resident (or temporary resident) beneficiary of a resident non-fixed trust makes because of the operation of subsection 115-215(3)?

    Registered
    6 September 2016

    Purpose
    To clarify the taxation treatment of capital gains from non-taxable Australian property assets of a non-fixed trust.

    Expected completion
    To be advised

    Comments
    See also finalised consultation matter [201644].

    Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Taxation Determination.

    [3804] Capital gain or loss – residency assumption

    Title
    Final Taxation Determination
    Income tax: does the residency assumption in subsection 95(1) of the Income Tax Assessment Act 1936 (ITAA 1936) apply for the purpose of section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997), which disregards certain capital gains of a trust which is a foreign trust for CGT purposes?

    Registered
    6 September 2016

    Purpose
    To clarify the taxation treatment of capital gains from non-taxable Australian property assets of a non-resident trust and the income tax consequences for resident beneficiaries.

    Expected completion
    December 2017

    Comments
    TD 2016/D4 published on 30 November 2016.

    See also finalised consultation matter [201643].

    The extended comment period has now ended for TD 2016/D4. We are considering comments and issues raised which will be taken into account in finalising the Determination.

    [3805] Capital gains – discount or capital loss offset

    Title
    Final Taxation Determination
    Income tax: where an amount included in a beneficiary’s assessable income under subsection 99B(1) of the Income Tax Assessment Act 1936 (ITAA 1936) had its origins in a capital gain from non-taxable Australian property of a foreign trust, can the beneficiary offset capital losses or a carry-forward net capital loss (‘capital loss offset’) or access the CGT discount in relation to the amount?

    Registered
    6 September 2016

    Purpose
    To clarify the interaction between the CGT provisions and section 99B of the ITAA 1936 where an amount is distributed by the trustee of a non-resident trust that is attributable to capital gains from non-taxable Australian property assets.

    Expected completion
    December 2017

    Comments
    TD 2016/D5 published on 30 November 2016

    See also finalised consultation matter [201643].

    The extended comment period has now ended for TD 2016/D5. We are considering comments and issues raised which will be taken into account in finalising the Determination.

    Last modified: 16 Nov 2017QC 50316