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 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
The draft Determination will set out proposed clarification on the taxation treatment of capital gains for a non-resident beneficiary or trustee of a resident trust.
Expected completion
August 2019
Comments
Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.
Contact
PAGPW&IC@ato.gov.au
See also:
[3803] Capital gain from a non-resident beneficiary of 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
The draft Determination will set out proposed clarification on the taxation treatment of capital gains from non-taxable Australian property assets of a non-fixed trust.
Expected completion
August 2019
Comments
Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.
Contact
PAGPW&IC@ato.gov.au
See also:
[3953] Back-to-back CGT roll-overs
Title
Draft Taxation Determination
Capital gains tax: if a CGT roll-over contains a condition that entities who own interests can acquire or receive 'nothing else', can the condition be satisfied if, after the transaction for which that CGT roll-over is sought, another transaction is planned to happen under which the same entities will acquire or receive something?
Registered
November 2018
Purpose
The draft Determination will set out our preliminary view that the condition will not be satisfied in the instance described.
Expected completion
July 2019
Contact
Simon O'Brien, Public Groups and International
Phone: (02) 4924 7901
PGIPAGUnit@ato.gov.au
[3959] CGT cost base – rental property
Title
Draft Practical Compliance Guideline
Calculation of CGT cost base for a rental property and balancing adjustment amounts for depreciating assets in the rental property where depreciation has either been claimed or disallowed
Registered
November 2018
Purpose
The draft Guideline will provide proposed practical guidance in the situation where a rental property is sold and depreciation has been claimed.
Expected completion
December 2019
Contact
Kevin Westbrook, Individuals
Phone: (07) 3119 9847
Kevin.Westbrook@ato.gov.au
[3964] Appointment of capital – CGT events E5 or E7
Title
Draft Taxation Determination
Does CGT event E5 or E7 happen if the trustee of a discretionary trust appoints an amount of capital to a beneficiary (eg by special resolution) and later makes a capital distribution in Australian currency in satisfaction of the appointed interest?
Registered
February 2019
Purpose
The draft Determination will set out the Commissioner’s proposed view on the CGT consequences of:
- appointing an amount of capital to a beneficiary
- the subsequent distribution of Australian currency to the beneficiary in satisfaction of the capital interest.
Expected completion
Late 2019
Contact
Glenn Davies, Tax Counsel Network
Phone: (07) 3213 5327
Glenn.Davies@ato.gov.au
[3965] Australian currency denominated asset – CGT events E5 to E7
Title
Draft Taxation Determination
Can an asset with a face value in Australian currency (including an Australian currency banknote or coin) be a CGT asset for CGT events E5 to E7?
Registered
February 2019
Purpose
The draft Determination will provide proposed clarification of whether assets with a face value in Australian currency (including Australian currency itself) can be CGT assets for CGT events E5 to E7.
Expected completion
Late 2019
Contact
Glenn Davies, Tax Counsel Network
Phone: (07) 3213 5327
Glenn.Davies@ato.gov.au
[3966] Unit trust – CGT events E5 to E8
Title
Draft Taxation Determination
What is the meaning of the term ‘unit trust’ in CGT events E5 to E8, and what are the interaction implications for other CGT events, in particular CGT events E4 and C2?
Registered
February 2019
Purpose
The draft Determination will set out the Commissioner’s proposed view on:
- what is a ‘unit trust’ for CGT events E5 to E8
- its implications for other CGT events.
Expected completion
Late 2019
Contact
Glenn Davies, Tax Counsel Network
Phone: (07) 3213 5327
Glenn.Davies@ato.gov.au
[3968] Small business concessions – active asset test
Title
Final Taxation Determination
Income tax: can a company that carries on a business in a general sense as described in TR 2019/1 but whose only activity is renting out an investment property claim the CGT small business concessions in relation to that investment property?
Registered
March 2019
Purpose
The final Determination will provide advice that a company that carries on a business in a general sense, but whose only activity is renting out an investment property cannot claim the CGT small business concessions.
Expected completion
September 2019
Comments
Draft TD 2019/D4 published on 5 April 2019. Comments period closed on 10 May 2019.
Contact
Renee George, Individuals
Phone: (07) 4753 7974
Renee.George@ato.gov.au
[3973] The first element of cost base and other deductible expenditure
Title
Draft Taxation Determination
Income tax: is expenditure upon discharge of a liability to which section 112-35 of the Income Tax Assessment Act 1997 applies expenditure to which subsection 110-45(2) of that Act applies?
Registered
May 2019
Purpose
The draft Determination will provide the Commissioner’s proposed view on the treatment of liabilities assumed upon acquisition of a CGT asset and whether on discharge of these liabilities, subsection 110-45(2) will apply such that they do not form part of the cost base.
Expected completion
To be advised
Contact
Matt Miller, Tax Counsel Network
Phone: (07) 3213 6658
Matthew.Miller@ato.gov.au
We are developing advice and guidance on the following capital gains tax issues.