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Will capital gains tax (CGT) event A1, E5 or E7 occur when the shares are transferred to the beneficiary who has absolute entitlement to the shares?

No. As the sole beneficiary of the trust has always had absolute entitlement to the shares, as the beneficiary has a vested and indefeasible interest in the entire asset and can direct the trustee to transfer the shares at any time, transferring the legal title to the beneficiary does not trigger any CGT event as the beneficiary has always been the owner of the shares for CGT purposes. This ruling applies for the following period : Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

Company A is the trustee of the trust for shares in Company B held for the beneficiary. The Declaration of Trust for Shares in Company B created the trust over the shares. The following clauses set out the relevant terms of the trust: 2. Declaration of Trust: The Trustee declares that the Trustee holds the Share upon trust for the Beneficiary absolutely. 3. Trustee to Obey Directions of Beneficiary The Trustee agrees to deal with the Share and vote in respect of it and execute such notices, proxies and other instruments in respect of it as the Beneficiary may from time to time direct. 4. Trustee to Execute Transfer The Trustee will from time to time as directed by the Beneficiary execute instrument of transfer whether in favour of the Beneficiary or of any other person in respect of the Share as the Beneficiary specifies and authorises and directs the Beneficiary to complete in such manner as the Beneficiary determines any income instrument of transfer in respect of the Share which the Trustee has already executed or will hereafter execute. 5. Power of Attorney

The Trustee irrevocably appoints the beneficiary to be the true and lawful Attorney of the Trustee (for so long as the Trustee is a registered holder of the Share) in the Trustee's name and on the Trustee's behalf to execute such instrument of transfer as is referred to in clause 4 and such notices, proxies and other instruments whatever as in the opinion of the Beneficiary will be necessary or desirable for carrying out any of the provisions of this Deed. The beneficiary intends to direct the Trustee to transfer the legal title of the shares to the beneficiary.

Income Tax Assessment Act 1997 Division 104 Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 104-75 Income Tax Assessment Act 1997 section 104 - 85