| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1051478461412
Date of advice: 15 February 2019
Ruling
Subject: Capital gains tax - trust resettlement – CGT events E1, E2 and A1
Question
Will the proposed variations to your Unit Trust Deed (Deed) cause CGT event A1, E1 or E2 to happen?
Answer
No.
The variation to the Deed is a valid exercise of the Trustees powers and the change will not cause the existing trust to terminate; nor will it lead to a particular asset being settled on terms of a different trust. In addition, the variation will not result in a change of ownership of any of the trust assets. As such, the proposed variation to the Deed will not cause CGT events A1, E1 or E2 to happen.
This ruling applies for the following period
Financial year ending 30 June 2019
The scheme commences on
1 July 2018
Relevant facts and circumstances
The Unit Trust (the Trust) was established a number of years ago.
● Company A as trustee for a fund and
● Company B as trustee for a fund
The trustee is a company incorporated in Australia.
The trustee and the unit holders intend to execute a Deed of Amendment to vary the terms of the Deed prior to the end of the financial year. The variation is allowed by the terms of the trust deed.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 104-55
Income Tax Assessment Act 1997 section 104-60