Private ruling: Family Trust Election
Published: June 2012
Ruling period: Year ended 30 June 1995 to year ending 30 June 2012
Date scheme commenced: 8 May 1995

Ruling: Q1: Is a family trust election valid despite failure of the family control test? | A1: No

Relevant facts and circumstances: A trustee made a family trust election nominating a cousin as test individual. The definition of family in section 272-95 of Schedule 2F of the Income Tax Assessment Act 1936 does not include cousins of the test individual. The trustee was the controlling group so the family control test was not passed.

Relevant legislative provisions: Income Tax Assessment Act 1936 Schedule 2F, | Income Tax Assessment Act 1936 Subsection 272-80(4) and | Income Tax Assessment Act 1936 Section 272-87.

Reasons for decision: Summary: As the family control test was not passed, the election was not validly made and has no effect.

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