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Edited version of private advice
Authorisation Number: 1051815152058
Date of advice: 11 March 2021
Ruling
Subject: CGT - constructive trust - acquiring ownership interest
Question
Do you have an ownership interest in the properties for capital gains tax purposes?
Answer
Yes. We accept a constructive trust was created by way of a court order which resulted in you acquiring an equitable ownership interest in the properties from XXXX.
This ruling applies for the following period:
Year ending 30 June 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
Person A created an expectation to the taxpayers that the properties would be held for the taxpayers until Person A's death.
The taxpayers claimed an equitable interest in the properties by way of a proprietary estoppel.
The taxpayers commenced court proceedings against Person A claiming they had equitable interests in the properties.
Orders were made in respect of the properties declaring that Person A held the properties on constructive trust for the taxpayers.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 109-5
Income Tax Assessment Act 1997 section 118-130
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