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Edited version of private advice
Authorisation Number: 1051809351976
Date of advice: 24 February 2021
Ruling
Subject: Trust resettlement
Question
Will the proposed amendments to the Trust Deed cause capital gains tax (CGT) event E1 to happen pursuant to section 104-55 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. The proposed amendments to the Trust established by the Deed of Variation will not cause the Trust to terminate or give rise to a particular asset of the Trust. The proposed amendments are considered within the powers of the Trustee to amend and will not cause CGT event E1 in section 104-55 of the Income Tax Assessment Act 1997 to happen.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust was settled.
The proposed Deed of Variation will be made in accordance with clauses of the Trust Deed.
The proposed changes are a valid exercise of power by the Trustee and included within the Trust deed.
The changes do not cause the existing trust to terminate.
The Trustee and the Trust property remain the same and no new beneficiaries are introduced in the Trust.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
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