Private ruling: CGT - legal and equitable interest
Date of advice: 8 January 2024
Published: 19 February 2024
Ruling period: Year ended 30 June 2023
Date scheme commenced: 1 July 2022

Ruling: Q1: Will you have a CGT event upon the disposal of the cryptocurrency you received on behalf of your ex-spouse? | A1: No. Having considered your circumstances and the relevant factors relating to your situation, the Commissioner accepts that although you were the legal owner of the cryptocurrency, it was never intended for you to have any beneficial ownership of the cryptocurrency. Therefore, you did not have a CGT event when you transferred the cryptocurrency to your ex-spouse.

Relevant facts and circumstances: You are an Australian resident for taxation purposes. You are not a temporary resident for taxation purposes. Your ex-spouse held an investment in an overseas investment fund, where the assets held within the fund were cryptocurrency. Your ex-spouse decided to close their overseas investment account. However, due to issues getting the funds transferred from the overseas country to Australia in a timely manner, your ex-spouse was advised to accept the transfer of this money via Bitcoin. Being more technically minded, you agreed to assist your ex-spouse by setting up a Bitcoin wallet in your name with an Australian crypto platform, with the intention of accepting the investment proceeds on your ex-spouse's behalf then immediately transferring the funds to their Australian bank account. In mid-to-late 2022, the owner of the overseas investment fund sent the proceeds of your ex-spouse's investment to your newly created Bitcoin wallet. Upon receiving this in mid-to-late 2022, you immediately transferred this amount to your Australian bank account, and then on the same day you transferred this amount to your ex-spouse's Australian bank account. You have supplied a Statutory Declaration signed by your ex-spouse, advising that the Bitcoin you received from their overseas investment was received by you on their behalf and for their benefit solely, and that the entire amount received by you was transferred to them. You have not received any benefit from these funds following the transfer to your ex-spouse.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 104-10