Income tax: capital gains: meaning of the words 'the beneficiaries and terms of both trusts are the same' in paragraphs 104-55(5)(b) and 104-60(5)(b) of the Income Tax Assessment Act 1997
Please note that the PDF version is the authorised version of this ruling.This document has changed over time. View its history.
Notice of Withdrawal
1. Taxation Ruling TR 2006/4 explains the circumstances in which the beneficiaries and terms of two trusts are the same for the purpose of the exceptions in paragraphs 104-55(5)(b) and 104-60(5)(b) of the Income Tax Assessment Act 1997. These paragraphs provide an exception to CGT event E1 and E2 respectively. Essentially, those events do not happen if an asset is transferred between two trusts with the same beneficiaries and terms. They are commonly referred to as the 'trust cloning' exceptions.
Commissioner of Taxation
21 July 2010