Private ruling: Trust resettlement
Date of advice: 12 October 2021
Published: December 2021
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the proposed amendments to the Trust Deed cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 (ITAA 1997) to happen? | A1: No. The proposed amendments to the Trust Deed will not cause the Trust to terminate or give rise to a particular asset of the Trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the Trustee as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the ITAA 1997 to happen.

Relevant facts and circumstances: The Trust was settled. The Family Trust includes a non-resident beneficiary They are not an Australian Resident nor a resident for taxation purposes. They have not received any distributions from the Trust. They are to be removed as a Guardian and a Beneficiary of the Trust by a proposed amendment to the trust deed. The proposed Deed of Variation will be made in accordance with a clause in the Trust Deed which provides broad powers for the Trustee to make changes to the Trust deed.

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