Disclaimer
This edited version has been archived due to the length of time since original publication.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.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1051530159484

Date of advice: 14 June 2019

Ruling

Subject: CGT - pre-CGT asset

Question

Has your interest in the property acquired before 20 September 1985 maintained its pre-CGT status?

Answer

Yes. Based on the facts and evidence provided, it is considered that you remained the beneficial owner at all times and therefore. The relevant interest has retained its pre-CGT status.

This ruling applies for the following period:

Year ending 30 June 2019

The scheme commences on:

1 July 2008

Relevant facts and circumstances

Before 20 September 1985, you and your sibling acquired Property A as equal tenants in common from your parents. You held a 50% interest in the property (original interest).

Your parent (the deceased) passed away before 20 September 1985. Your remaining parent and your sibling were the executors of the deceased estate. Your remaining parent passed away before 20 September 1985. You and your sibling were the executors of their estate.

You engaged Entity A to attempt to execute and administer the two estates. It took a number of years for the estates to be executed.

As a consequence of the inheritance, you and your sibling acquired some parcels of land in your individual names as tenants in common.

Due to difficulties between you and your sibling you both decided to separate your joint interests in both the inherited lands and the property via auction.

You approached your sibling to purchase their portion of the property but your sibling refused.

You instructed Entity A to purchase the property, achieving the acquisition of your sibling's portion that they were not willing to sell. You would not have been able to acquire your sibling's interest in your name. Person Z from Entity A was successful in acquiring the property under contract after 20 September 1985.

Person Z confirmed that they had been acting on the basis that your identity as the ultimate transferee would be kept confidential from your sibling during the whole conveyancing process.

You paid the purchase price and the stamp duty on the purchase, and were responsible for paying the settlement monies and related liabilities.

You provided details of how your funds were transferred to acquire the property.

Following settlement, title to the property was transferred to Person Z and on the same day, title to the property was transferred from Person Z to you solely.

Relevant legislative provisions

Income Tax Act Assessment 1997 Division 109

Income Tax Act Assessment 1997 Section 104-10

Income Tax Act Assessment 1997 Section 104-55

Income Tax Act Assessment 1997 Section 104-75

Income Tax Act Assessment 1997 Section 104-85

Income Tax Act Assessment 1997 Section 112-45

Income Tax Act Assessment 1997 Section 149-10

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).