Private ruling: CGT - trust resettlement
Date of advice: 10 January 2022
Published: March 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do the proposed amendments to the trust deed cause a CGT event, including CGT event E1 or E2, to happen? | A1: No. The amendments proposed are a valid exercise of the trustee's powers contained within the trust's constituent document. Therefore, CGT events E1 and E2 will not happen, nor will any other CGT events happen. Accordingly, no tax liability will arise as a result of the amendments proposed.

Relevant facts and circumstances: A trust was established a number of years ago. The trustee of the trust is a company. The trust has a number of beneficiaries. The trustee has power under the trust deed to vary certain clauses of the trust deed. The trustee proposes to exercise their power under the trust deed to add a beneficiary to the trust. The trustee proposes to exercise their power under the trust deed to appoint a new appointor.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-55 | Income Tax Assessment Act 1997 section 104-60