| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051606597865
Date of advice: 5 December 2019
Ruling
Subject: Will amending the trust vesting date trigger a capital gains tax event.
Question
Will a court approved variation of the vesting date of the trust trigger a CGT event by way of resettling of the trust property?
Answer
No
The proposed court approved variation to the vesting date would be a valid amendment to the trust. It will not result in the termination of the trust and a new trust to arise for tax law purposes and CGT event E1 or E2 will not occur.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The late deceased passed away.
Clause X of his will instructed a trust be established.
The trust has not vested.
The trust's vesting date is when one of the beneficiaries turns XX; the current vesting date is in the middle of 20XX.
There is no variation clause in the trust deed.
Prior to the current vesting date, the trustees intend on applying to the Supreme Court of the state to get a Court Order to vary the vesting date.
There will be no change to the Trust property or the beneficiaries of the trust
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60