1 Are the individuals in their capacity under section 66G of the Conveyancing Act 1919 (NSW), required to withhold Capital Gains Tax (CGT) for both the co -owner and the bankrupt estate?
1 No. Question 2 Does the individual, in their capacity as the Bankruptcy Trustee of the bankrupt estate, required to withhold CGT on behalf of the estate? Answer 2 Yes. This ruling applies for the following period: DD MM YY The scheme commenced on: DD MM YY
On the specified date the Bankrupt and their spouse (the Co-Owner), purchased as joint tenants the property. On the specified date the Court of Australia made a sequestration order (the order) against the Bankrupt. The order is operated by section 58 (1), 116 (1) and 129AA of the Bankruptcy Act 1966 andon this date the following was applied: • The equitable interest in the property was vested in the Bankruptcy Trustee in their capacity as trustee of the Bankrupt Estate of the bankrupt. • The order operates to severer the joint tenancy between the Bankrupt and the Co-Owner. This allows the bankrupt trustee to sell the bankrupts interest in the property. On the specified date, the Court of Australia ordered the bankrupt trustee and liquidator (together as the s66G Trustees) to be appointed as trustees for sale under section 66G of the Conveyancing Act 1919 (NSW) . This order was due to the inability of the Bankruptcy Trustee and the Co-Owner to agree on how to sell the property. On the specified date, the property was sold at auction to a third party for the specified amount. Settlement occurred the specified date.
Settlement of expenses for the property by the s 66G Trustees as instructed in the court orders: • Deduction of associated expenses. • The specified amount was remitted to the mortgagee. • Net surplus divided equally between the bankrupt estate and co-owner.
Income Tax Assessment Act 1936 Division 6 Income Tax Assessment Act 1936 section 254 Income tax Assessment Act 1997 Division 50 Income tax Assessment Act 1997 section 104-10 Income tax Assessment Act 1997 section 106-30 Income tax Assessment Act 1997 section 110-25 Income tax Assessment Act 1997 section 112-20 Income tax Assessment Act 1997 section 118-110 Income tax Assessment Act 1997 section 118-14 Reason for decision Question 1 Obligations of the Trustees for sale Detailed reasoning Appointments under section 66G of the Conveyancing Act 1919 (NSW) , Section 66G of the Conveyancing Act 1919 (NSW) permits the court to appoint statutory trustees for sale or partition of property held in co-ownership: (1) Where any property (other than chattels) is held in co-ownership the court