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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