1 Does CGT event K3 apply to the transfer of listed shares to a non-resident deceased estate on the death of the resident taxpayer?
No. Based on the information provided to the commissioner CGT event K3 does not occur when the listed shares are transferred to a non-resident deceased estate. The listed shares didn't pass to a foreign resident beneficiary, rather they were sold as part of the administration of the estate. Question 2 If CGT event K3 does not apply, does the non-resident deceased estate have a taxable capital gain on the subsequent sale of listed shares? Answer No. Based on the information provided to the Commissioner the deceased estate does not have a taxable capital gain on the subsequent sale of the listed shares. Section 855-10 of the Income Tax Assessment Act 1997 applies to disregard a capital gain or loss in relation to the disposal by the trustee of a foreign trust for CGT purposes of the listed shares because they are not taxable Australian property (TAP). This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: DDMMYY
The deceased was a resident of Australia for many years and was a resident when they died. The executor of their will and potential beneficiaries are all non-residents of Australia they reside in Country Z. The deceased estate is a non-resident trust estate. Prior to their death, the deceased had a share portfolio of listed shares. Shortly after probate was granted the shares were sold by the executor of the estate and not transferred to the non-resident beneficiaries of the estate. To date there have been no estate distributions to beneficiaries.
Income Tax Assessment Act 1997 section 855-10