Taxation Determination

TD 97/15W

Income tax: capital gains: does section 160ZM of the Income Tax Assessment Act 1936 apply to a non-assessable payment made by a trustee to a beneficiary of a discretionary trust?

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FOI status:

Notice of Withdrawal

Taxation Determination TD 97/15 is withdrawn with effect from the 1998-99 income year.

1. Taxation Determination TD 97/15 discusses the capital gains tax consequences of the payment of a non-assessable amount to a mere object of a discretionary trust. The determination is written in terms of the provisions of the Income Tax Assessment Act 1936 though an Addendum to the determination ensures it also applies to the equivalent provision in the Income Tax Assessment Act 1997.

2. Taxation Determination TD 2003/28, that issues today, deals comprehensively with the treatment of all discretionary trust beneficiaries (that is, both mere objects and default beneficiaries). That TD finalises Draft Taxation Determination TD 99/D67. The view expressed in TD 2003/28 in respect of mere objects is the same as that in Taxation Determination TD 97/15 as amended.

Commissioner of Taxation
26 November 2003

References

ATO references:
NO 2003/11684

Related Rulings/Determinations:

TD 2003/28
TD 1999/D67

Subject References:
assets
CGT asset
beneficiary
default beneficiary
discretionary beneficiary
discretionary trust
disposal
taker in default
trust
units
unit trust

Legislative References:
ITAA 1997 104-70
ITAA 1997 104-70(1)
ITAA 1997 104-70(4)
ITAA 1997 104-70(6)

Other References:
CGT Cell (CGDET113)
UMGCGTTD 96-23
NAT 95/9530-9