Private ruling: Application of section 855-10 of the Income Tax Assessment Act 1997
Published: June 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: Year ended 30 December 2012

Ruling: Q1: Will any capital gain made by Company A on disposal of its units in the X Trust be disregarded under section 855-10 of the Income Tax Assessment Act 1997? | A1: Yes. | Q2: If question 1 is answered positively, does Part IVA of the Income Tax Assessment Act 1936 apply in respect of the non-inclusion in Company A's assessable income of any capital gain in respect of the disposal of its units in the X Trust? | A2: No.

Relevant facts and circumstances: 1. Company A held units in an Australian resident trust, which it has disposed of. 2. Company A is a non-resident of Australia for income tax purposes. 3. Company A does not have a permanent establishment in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 855-10 | Income Tax Assessment Act 1936 Part IVA

Reasons for decision: Detailed Reasoning - Question 1:: Company A meets the criteria for the application of section 855-10 of the Income Tax Assessment Act 1997 . That is, the Non-Taxable Australian Real Property assets held in the Trust exceed the Taxable Australian Real Property held in the Trust. | Detailed Reasoning - Question 2:: On the facts of this case it is considered that Part IVA of the Income Tax Assessment Act 1936 does not apply.