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Edited version of private advice
Authorisation Number: 1051901036709
Date of advice: 24 September 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 occur?
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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust was established by Deed on XXXX.
The trustee proposes to make a deed of variation in accordance with a clause in the Trust Deed with provides broad powers for the Trustee to make changes to the Trust Deed.
The proposed changes are a valid exercise of power by the Trustee.
The prosed changes do not result in a CGT event happening.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-55
Income Tax Assessment Act 1997 section 104-60
Income Tax Assessment Act 1997 section 102-20