Private ruling: Capital gains tax
Date of advice: 18 September 2025
Published: 17 November 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DDMMYY

Ruling: Q1: Does CGT event K3 apply to the transfer of listed shares to a non-resident deceased estate on the death of the resident taxpayer? | A1: 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. | Q2: 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? | A2: 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).

Relevant facts and circumstances: 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.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 855-10