Private ruling: Trust resettlement
Date of advice: 26 June 2021
Published: September 2021
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the proposed amendments to the Trust Deed cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen? | A1: No. The proposed amendments to the Trust Deed will not cause the Trust to terminate or give rise to a particular asset of the Trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the Trustee as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.

Relevant facts and circumstances: The Trust was settled. The Schedule of the Trust Deed contains primary beneficiaries and tertiary beneficiaries. However, the specific wording of this item leaves an amount of uncertainty as to the trustees' capacity. You are undertaking this amendment to reduce uncertainty as to the trustees' capacity. The proposed Deed of Variation will be made in accordance with a clause of the Deed, where the Trustee may revoke, add to, vary, or amend any provisions of the Deed (subject to certain provisos).

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