ATO Interpretative Decision

ATO ID 2003/550 (Withdrawn)

Income Tax

Capital gains tax: application of CGT event E2 - transfer of assets between superannuation funds
FOI status: may be released

This ATO ID has been withdrawn as the ATO view on this matter now appears in Taxation Ruling TR 2005/D15

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Will the exception in paragraph 104-60(5)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) apply to the transfer of assets from one superannuation fund to another superannuation fund?

Decision

Yes. The beneficiaries and terms of both superannuation funds are the same.

Therefore, the exception in paragraph 104-60(5)(b) of the ITAA 1997 will apply.

Facts

The assets of one superannuation fund will be transferred to another superannuation fund. The transferor fund will not receive any consideration for the transfer.

Both funds are complying superannuation funds.

Both funds have the same beneficiaries. That is, they have the same members and pensioners.

The trust deeds for both funds are identical. Both contain clauses permitting the transfer of assets.

The investment strategies for both funds are the same.

Reasons for Decision

CGT event E2 happens when a CGT asset is transferred to an existing trust (subsection 104-60(1) of the ITAA 1997). The event happens when the asset is transferred (subsection 104-60(2)). As one trust (superannuation fund) will transfer an asset to another trust (superannuation fund) CGT event E2 will happen unless the exception in paragraph 104-60(5)(b) applies.

The exception in paragraph 104-60(5)(b) of the ITAA 1997 applies if an asset is transferred to a trust from another trust and the beneficiaries and terms of both trusts are the same.

In this case, the beneficiaries and terms of both superannuation funds are the same. The members and pensioners of both funds are the same and their trust deeds are identical.

Accordingly, the exception in paragraph 104-60(5)(b) of the ITAA 1997 will apply to the proposed transfer of assets between the funds.

Date of decision: 30 May 2003

Year of income: Year ended 30 June 2003

Legislative References:
Income Tax Assessment Act 1997
   subsection 104-60(1)
   subsection 104-60(2)
   paragraph 104-60(5)(b)

Related ATO Interpretative Decisions
ATO ID 2002/1012
ATO ID 2003/330

Keywords
Capital gains tax
Disposal of assets
Superannuation
CGT events E1-E9 - trusts

Business Line: Losses and Capital Gains Tax Centre of Expertise

Date of publication: 11 July 2003

ISSN: 1445-2782

history

	Date:	Version:
	30 May 2003	Original statement
You are here	28 September 2005	Archived

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