| Disclaimer 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: 1051857810104
Date of advice: 26 June 2021
Ruling
Subject: Trust resettlement
Question
Will the proposed amendments to the Trust Deed cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 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 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 ended 30 June XXXX
The scheme commences on:
1 July XXXX
Relevant facts and circumstances
The Trust was settled.
The Schedule of the Trust Deed contains primary beneficiaries and tertiary beneficiaries.
However, the specific wording of this item leaves an amount of uncertainty as to the trustees' capacity.
You are undertaking this amendment to reduce uncertainty as to the trustees' capacity. The proposed Deed of Variation will be made in accordance with a clause of the Deed, where the Trustee may revoke, add to, vary, or amend any provisions of the Deed (subject to certain provisos).
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60