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Edited version of private advice
Authorisation Number: 1051937315142
Date of advice: 10 Jnauary 2022
Ruling
Subject: CGT - trust resettlement
Question
Do the proposed amendments to the trust deed cause a CGT event, including CGT event E1 or E2, to happen?
Answer
No. The amendments proposed are a valid exercise of the trustee's powers contained within the trust's constituent document. Therefore, CGT events E1 and E2 will not happen, nor will any other CGT events happen. Accordingly, no tax liability will arise as a result of the amendments proposed.
This ruling applies for the following periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
A trust was established a number of years ago.
The trustee of the trust is a company.
The trust has a number of beneficiaries.
The trustee has power under the trust deed to vary certain clauses of the trust deed.
The trustee proposes to exercise their power under the trust deed to add a beneficiary to the trust.
The trustee proposes to exercise their power under the trust deed to appoint a new appointor.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-55
Income Tax Assessment Act 1997 section 104-60