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Edited version of private advice
Authorisation Number: 1051857853656
Date of advice: 26 June 2021
Ruling
Subject: Proposed amendment to the trust deed
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 periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust was settled on XX month 19XX.
Clause 2(a)(1) of the Trust Deed allows the Trustee to "alter vary add to or absolutely revoke all of any of the trust powers provisions herein declared or contained other than clause 1, this clause 2, clause 5(b) and the vesting date".
The proposed Deed Poll of amendment amends the Trust Deed as follows:
a) In clause 6(b), replace the words ""The Appointor" shall be the party named in the Sixth Schedule" with the words ""The Appointor" shall be the party named in the Ninth Schedule". For the avoidance of doubt, the balance of clause 6(b) remains unamended.
b) On page 20 of the Trust Deed, insert the following additional words under The Seventh Schedule without removing or replacing any part of the existing Seventh Schedule:
"A
B
Any entities partly or wholly owned or controlled by either A or B"
c) On page 20 of the Trust Deed, insert a new schedule below the Eighth Schedule as follows:
"The Ninth Schedule:
A, B, and C, by majority vote."
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60