Private ruling: Capital losses - CGT event C2 and unitholdings
Date of advice: 28 January 2026
Published: 23 March 2026
Ruling period: Income year ending 30 June 2022 | Income year ending 30 June 2023 | Income year ending 30 June 2024
Date scheme commenced: 1 July 2021

Ruling: Q1: Did CGT event C2 happen with respect to Company A's unitholding in the Trust, pursuant to subsection 104-25(1) of the Income Tax Assessment Act 1997 (Cth)? | A1: Yes. On the facts and circumstances of the case, the ownership of the unitholding had come to an end. There are no assets or value held by the units, and there is no likelihood of Company A recovering any value. The parties who issued the units and the parties who hold units have treated the units as effectively at an end. In reaching this view, the Commissioner has considered the actions of all parties holding the units (including the major unit holders), the actions of the trustee company and the directors of the trustee company, and the existence/likelihood of any action or further action by the unit holders or the trustee.

Relevant facts and circumstances: On XX Month 20XX, Company A was incorporated as a proprietary company limited by shares. In 20XX, Company A acquired units in the Trust. On XX Month 20XX, Company A was informed that the corporate trustee of the Trust and its related entities had entered into external administration. Between XX Month 20XX and the date of this ruling, Company A's ownership of the units had come to an end.

Relevant legislative provisions: Income Tax Assessment Act 1997 , subsection 104-25(1)