Private ruling: beneficial ownership
Date of advice: 2 October 2023
Published: 13 November 2023
Ruling period: Year ended XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Will Capital Gains Tax (CGT) event A1 occur to you on the sale of the property as per section 104-10 of the Income Tax Assessment Act 1997? | A1: No. Having considered your circumstances and the relevant factors relating to your situation, the Commissioner accepts that although you had a legal ownership interest in the property, you did not have any beneficial ownership of the property. Therefore, CGT event A1 or any other CGT event did not happen when your legal ownership ended.

Relevant facts and circumstances: On XX/XX20XX, your parent purchased two allotments (the Property). Your parent registered a deed of assignment for the Property in the names of several family members including you, with the intention of dividing into eight equal shares for the family members to purchase. The Property was divided into the following shares: • Parents- three eighths share, paid $XXXX • Person A- two eighths share, paid $XXXX • Person B and Person C- two eighths share, paid $XXXX • Person D- one eighths share, paid $XXXX You were living away from the family home at this time, and did not contribute any money towards this agreement, or purchase a share of the Property. In XX/20XX, you were asked to sign some documents for the sale of some land your family were selling. At this time, you were under pressure due to personal issues, and signed without questioning the specifics of the documents. In XX/20XX, your accountant brought to your attention that there had been a property sold by you. The contract of sale for the property was entered into on XX/XX/20XX, with settlement occurring on XX/XX/20XX. You did not receive any of the proceeds of this sale, or any income from the Property throughout the ownership period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10