Will CGT event A1, CGT event E1 or CGT event E2 in sections 104-10, 104-55 or 104-60 of the Income Tax Assessment Act 1997 (ITAA 1997) happen on entering into any of the following Deeds: (a) Deed of Amendment (b) Deed Excluding Beneficiaries, and (c) Deed Changing the Trustee.
(a) No (b) No. (c) No. This ruling applies for the following periods : Year ended 30 June 20XX The scheme commenced on: XX/XX/XXXX
1. The Taxpayer and his Former Spouse have children who are Primary Beneficiaries of the Trust. 2. As a result of the breakdown of the Taxpayer's and his Former Spouse marriage, a review of the terms of The Trust was conducted. 3. The Taxpayer has commenced a relationship with a New Spouse. History of changes to the Trust 4. The Trust was established by Deed dated XX/XX/XXXX (Trust Deed). 5. On XX/XX/XXXX, a Deed of Retirement and Appointment for the Trust was executed which saw the change in trustee of the Trust. 6. There were a number of additions and exclusion from the class of general beneficiaries of the Trust. Namely, the former spouse, their children and any new children of the former spouse were excluded from the class of General beneficiaries. Corporation that has a director who is a beneficiary of the Trust is added to the class of General Beneficiaries. 7. The Taxpayer appointed a company which he was the sole director and shareholder as the Appointor and Guardian of the Trust Proposed changes to the Trust Deed and powers of the trustee
8. The trustee of the Trust, with the consent of the Guardian, proposes to make changes listed below to the Trust by executing the following Deeds: a) Deed of Amendment b) Deed Excluding Beneficiaries, and c) Deed Changing the Trustee. 9. The trustee of the trust, with the consent of the Guardian, wishes to take the following actions: a) remove the Children from his marriage to his Former Spouse as Primary Beneficiaries of the Trust b) remove the Former Spouse as an Additional member of the class of General Beneficiaries of the Trust c) insert the Taxpayer, New Spouse, and the children of the relationship as primary Beneficiaries of the Trust, and d) declare that the spouses, widows, and children of each of his children from the relationship with his Former Spouse to be excluded from the class of General beneficiaries of the Trust going forward. e) The Appointment of a new trustee and the retirement of the existing trustee.
10. The amendments and proposed amendments to the Trust and the Trust Deed result from a valid exercise of the powers under the Trust Deed (including where necessary the amendment power contained within the Trust Deed).
Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 104-55 Income Tax Assessment Act 1997 section 104-60 Question Will CGT event A1, CGT event E1 or CGT event E2 in sections 104-10, 104-55 or 104-60 of the Income Tax Assessment Act 1997 (ITAA 1997) happen on entering into any of the following Deeds: (a) Deed of Amendment (b) Deed Excluding Beneficiaries, and (c) Deed Changing the Trustee. Summary Neither CGT event A1, CGT event E1 or CGT event E2 will happen when any of the proposed amendments to the terms of the Trust is implemented either separately or together as they all result from valid exercises of powers under the Trust Deed. Detailed reasoning Trust resettlement 1. A trust resettlement will occur for income tax