Private ruling: Will amending the trust vesting date trigger a capital gains tax event.
Date of advice: 5 December 2019
Published: March 2020
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will a court approved variation of the vesting date of the trust trigger a CGT event by way of resettling of the trust property? | A1: No The proposed court approved variation to the vesting date would be a valid amendment to the trust. It will not result in the termination of the trust and a new trust to arise for tax law purposes and CGT event E1 or E2 will not occur.

Relevant facts and circumstances: The late deceased passed away. Clause X of his will instructed a trust be established. The trust has not vested. The trust's vesting date is when one of the beneficiaries turns XX; the current vesting date is in the middle of 20XX. There is no variation clause in the trust deed. Prior to the current vesting date, the trustees intend on applying to the Supreme Court of the state to get a Court Order to vary the vesting date. There will be no change to the Trust property or the beneficiaries of the trust

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