Taxation Determination

TD 2004/14W

Income tax: capital gains: does CGT event E2 in section 104-60 of the Income Tax Assessment Act 1997 happen if a CGT asset is transferred between two trusts and the beneficiaries and terms of both trusts are the same?

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Notice of Withdrawal

Taxation Determination TD 2004/14 is withdrawn with effect from today.

1. Taxation Determination TD 2004/14 explains that CGT event E2 in section 104-60 of the Income Tax Assessment Act 1997 (ITAA 1997) does not happen in respect of the transfer of a CGT asset between two trusts if the beneficiaries and terms of both trusts are the same. In those circumstances, the exception in paragraph 104-60(5)(b) of the ITAA 1997 applies.

2. However, that exception has been repealed by Tax Laws Amendment (2009 Measures No. 6) Act 2010. As a result, the exception is no longer available for CGT events happening on or after 1 November 2008.

3. As TD 2004/14 is no longer current, it is withdrawn.

Commissioner of Taxation
21 July 2010

References

ATO references:
NO 1-23UD4J8