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Edited version of private advice
Authorisation Number: 1051987161272
Date of advice: 24 June 2022
Ruling
Subject: CGT - shares
Question
Does Person A own the shares for capital gains tax (CGT) purposes?
Answer
No. Person A does not own the shares in his own right. Person A holds them as trustee of a bare trust with Person A and Person B as the beneficiaries of the bare trust.
This private ruling applies for the following periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts
The 'X' Superannuation fund (the fund) was the legal owner of a number of listed shares.
Person A and Person B are members of the fund and directors.
Person A is a trustee of the fund.
Person A and Person B received a superannuation benefit from the fund. The listed shares formed part of that superannuation benefit.
Person B authorised the transfer of their interest in the listed shares to a trading account operated by Person A with the belief that they would still retain the beneficial interest in those listed shares.
On XX XXX 20XX all the shares in the fund were transferred at the direction of the fund members to a share trading account operated by person A.
On XX XXX 20XX the fund was wound up.
The shares were sold and proceeds from the sale of the shares were used to acquire real property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 102-20.
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 106-50
Income Tax Assessment Act 1997 Section 960-100.