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Edited version of private advice
Authorisation Number: 1051628025426
Date of advice: 20 January 2020
Ruling
Subject: Trust Resettlement
Question
Will the proposed amendments to the Trust Deed cause CGT event E1 or E2 to happen?
Answer
No.
The proposed amendments to the Trust Deed will not cause the Trust to terminate or give rise to a particular asset of the Trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the Trustee to amend as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The Trust is a discretionary trust established by deed dated XX/XX/XXXX
The Trust Deed provides that beneficiaries may include entities that are foreign residents for land tax and federal income tax purposes.
The Trust Deed contains a wide power of amendment.
For land tax purposes, the Trustee now wishes to amend the Trust Deed to exclude foreign beneficiaries.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60