Private ruling: trust income
Published: June 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017
Date scheme commenced: 1 July 2013

Ruling: Q1: Is the capital gain made by the trust included in your assessable income? | A1: No

Relevant facts and circumstances: You are a beneficiary of a trust situated overseas. You are not entitled to any distribution of capital from the trust. The trust made a capital gain upon the sale of a property located overseas. You did not receive any distribution from those proceeds.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 97

Reasons for decision: Summary: Your assessable income includes amounts of net income from a trust to which you are presently entitled: Section 97 of the Income Tax Assessment Act 1936 . In this instance, you are not entitled to receive any distribution of capital from the trust, therefore you cannot be presently entitled to that class of income and it is not included in your assessable income.