Sandini Pty Ltd v FCT – Commissioner appeals from decision holding that a CGT rollover, on break-down in marriage, doesn’t have to be to the former spouse (though there’s a separate rollover from a related entity to a spouse)

The Commissioner has appealed to the Full Federal Court against the decision in Sandini Pty Ltd v FCT [2017] FCA 287.

In that decision, the Federal Court had ruled that the CGT marriage breakdown roll-over relief applied where shares were transferred by a former spouse to his former wife’s discretionary trust, rather than to the former wife herself (as specified in the relevant Family Court order).

The case also involved the crucial issue of when a change in ownership of an asset occurs under CGT event A1 which, in turn, raised the crucial issue of whether a change in the “beneficial ownership” of an asset alone was sufficient to trigger CGT event A1

[Related TT Article; LTN 71, 18/4/17]