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Edited version of private advice
Authorisation Number: 1051908353214
Date of advice: 12 October 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 (ITAA 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 ITAA 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 Family Trust includes a non-resident beneficiary
They are not an Australian Resident nor a resident for taxation purposes.
They have not received any distributions from the Trust.
They are to be removed as a Guardian and a Beneficiary of the Trust by a proposed amendment to the trust deed.
The proposed Deed of Variation will be made in accordance with a clause in the Trust Deed which provides broad powers for the Trustee to make changes to the Trust deed.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60