This Draft Determination, released Wed 13.6.2012, provides that CGT event E1 or E2 of the ITAA 1997 does not happen if, pursuant to a valid exercise of a power contained within the trust’s constituent document, the terms of the trust are changed.
However, the Draft also provides that CGT event E1 or E2 will happen if the amendment causes the trust to terminate for trust law purposes, or the effect of the amendment is to lead to a particular asset being subject to a separate charter of rights and obligations such as to give rise to the conclusion that that asset has been settled on terms of a different trust.
COMMENTS are due by 13 July 2012 to Gavin O’Shea; Tel: (03) 928 51955; Fax: (03) 928 51943; Email: gavin.o’shea@ato.gov.au.
[LTN 112, 13/6]