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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051421869428

Date of advice: 28 August 2018

Ruling

Subject: Potential capital gains tax and Division 7A implications

Question 1

Will the proposed amendments to the Trust Deed of the Apple Family Trust, appointment of an Additional Trustee and Additional Appointor in respect of a part of the Trust Fund result in a capital gains tax (CGT) E1 or E2 events happening pursuant to sections 104-55 or 104-60 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

No

Question 2

Will the contemplated changes impact the treatment of the unpaid present entitlements of Pear Pty Ltd that arose before 16 December 2009 pursuant to Division 7A of the Income Tax Assessment Act 1936 (ITAA 1936)?

Answer

No

This ruling applies for the following period

1 July 20xx to 30 June 20xx

The scheme commences on

1 July 20xx

Relevant facts and circumstances

Apple Family Trust

Relevant provisions of the Deed of Settlement, as amended.

Activities of the Family Trust

Proposed changes

Proposed key amendments to the Deed of Settlement

Proposed Deed of Appointment of Additional Trustee

Proposed Deed of Appointment of Additional Appointer

Operation of the Family Trust after changes

Unpaid present entitlement to Pear Pty Ltd

Reasons for decision

Question 1

Will the proposed amendments to the Trust Deed of the Apple Family Trust, appointment of an Additional Trustee and Additional Appointor in respect of a part of the Trust Fund result in a CGT E1 or E2 events happening pursuant to sections 104-55 or 104-60 of the ITAA 1997?

By declaration or settlement

Transferring a CGT asset to a trust: CGT event E2

Application to your circumstances

Question 2

Will the contemplated changes impact the treatment of the unpaid present entitlements of Pear Pty Ltd that arose before 16 December 2009 pursuant to Division 7A of the ITAA 1936?

DISTRIBUTIONS TO ENTITIES CONNECTED WITH A PRIVATE COMPANY – DEEMED DIVIDENDS

Application to your circumstances


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