Private ruling: CGT - constructive trust - acquiring ownership interest
Date of advice: 11 March 2021
Published: May 2021
Ruling period: Year ending 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Do you have an ownership interest in the properties for capital gains tax purposes? | A1: Yes. We accept a constructive trust was created by way of a court order which resulted in you acquiring an equitable ownership interest in the properties from XXXX.

Relevant facts and circumstances: Person A created an expectation to the taxpayers that the properties would be held for the taxpayers until Person A's death. The taxpayers claimed an equitable interest in the properties by way of a proprietary estoppel. The taxpayers commenced court proceedings against Person A claiming they had equitable interests in the properties. Orders were made in respect of the properties declaring that Person A held the properties on constructive trust for the taxpayers.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 109-5 | Income Tax Assessment Act 1997 section 118-130