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Edited version of private advice
Authorisation Number: 1051607568006
Date of advice: 20 November 2019
Ruling
Subject: Capital gains tax (CGT)
Question
Will CGT event E1 under section 104-55 of the Income Tax Assessment Act 1997 (ITAA 1997) when the proposed amendments are made to the Deed?
Answer
No. The Commissioner considers that the amendments do not cause the existing Trust to terminate and a new Trust to arise. More information about CGT event E1 can be found by searching for "QC22154" on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust was created by Deed with aTrustee. The settled trust fund was an amount.
The unit holders of the Trust at the time of execution were:
· Party A - some units;
· Party B - some units;
· Party C - some units; and
· Party D - some units.
A Clause of the Deed provides that the Deed may be amended and how.
There exists a proposed Deed of Amendments that will be entered into between:
· The Trustee;
· Party A;
· Party B;
· Party C; and
· Party D.
The proposed Deed of Amendments details a list of amendments to the Deed.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-55