Advice under development – trust specific issues

We are developing advice and guidance on the following trust specific issues.

• [3885] Trust splitting
• [3942] Section 100A reimbursement agreements [UPDATED]

[3885] Trust splitting

Title
Final Taxation Determination
Income tax: will a trust split arrangement of the type described in this Determination cause a new trust to be settled over some but not all assets of the original trust with the result that CGT event E1 in subsection 104–55(1) of the Income Tax Assessment Act 1997 happens?

Registered
13 September 2017

Purpose
The final Determination will provide the Commissioner's view on the tax implications of arrangements that are commonly referred to as ‘trust splitting’, in particular whether splitting the trust causes capital gains tax event E1 to occur.

Expected completion
To be advised

Comments
Draft TD 2018/D3 published on 11 July 2018. Comments period closed on 10 August 2018. We are considering comments and issues raised during consultation.

See also:

• finalised consultation matter [201744]

[3942] Section 100A reimbursement agreements

Title
Draft Taxation Ruling
Income tax: section 100A: reimbursement agreements – purpose and ordinary dealing exclusions

Registered
October 2018

Purpose
The draft Ruling will provide the Commissioner’s preliminary views on the exclusions from a ‘reimbursement agreement’ for:

• agreements not entered into with a purpose of eliminating or reducing someone’s income tax, and
• agreements entered into in the course of ordinary family or commercial dealings.

Expected completion
To be advised