Taxation Determinations

TD 2019/4

This determination considers whether a trust split arrangement causes a new trust to be settled over some but not all assets of the original trust with the result that CGT event E1 in subsection 104-55(1) of the Income Tax Assessment Act 1997 happens.

 

TD 2019/D7

 

This determination says that Subdivision 855-A (or subsection 768-915(1)) of the Income Tax Assessment Act 1997  does not disregard a capital gain that a foreign resident (or temporary resident) beneficiary of a resident non-fixed trust makes because of subsection 115-215(3).

 

TD 2019/D6

 

This determination is about whether the source concept in Division 6 of Part III of the Income Tax Assessment Act 1936 is relevant in determining whether a non-resident beneficiary of a resident trust (or trustee for them) is assessed on an amount of trust capital gain arising under Subdivision 115-C of the Income Tax Assessment Act 1997.

 

TD 2018/9

 

This determination is about the deductibility of interest expenses incurred by a beneficiary of a discretionary trust on borrowings on-lent on interest-free terms to the trustee.

 

TD 2017/24

This determination says that a beneficiary cannot offset capital losses or net capital losses or access the CGT discount in relation to an amount included in the beneficiary’s assessable income under subsection 99B(1) of the Income Tax Assessment Act 1936  that had its origins in a capital gain from non-taxable Australian property of a foreign trust.

TD 2017/23

 

This determination says that the section 855-10 of the Income Tax Assessment Act 1997 , which disregards certain capital gains of a trust which is a foreign trust for CGT purposes overrides the residency assumption when calculating the net income of a trust under subsection 95(1) of the Income Tax Assessment Act 1936.

 

TD 2016/19

 

This determination says that a beneficiary of a trust is not entitled to a deduction under section 25-35 of the Income Tax Assessment Act 1997 for the amount of an unpaid present entitlement to trust income that the beneficiary has purported to write off as a bad debt.

 

TD 2015/20

 

 

This determination says that a release by a private company of its unpaid present entitlement is a ‘payment’ within the meaning of Division 7A of Part III of the Income Tax Assessment Act 1936.

 

TD 2012/22

 

This determination is about the proportionate approach to the assessment of the net income of a trust. It highlights how different forms of trustee resolution might bring about different tax outcomes where there has been an amendment of the net income of the trust.

 

TD 2012/21

 

 

This determination is about whether CGT event E1 or E2 in sections 104-55 or 104-60 of the Income Tax Assessment Act 1997 happen if the terms of a trust are changed pursuant to a valid exercise of a power contained within the trust’s constituent document, or varied with the approval of a relevant court.

 

TD 2012/11

This determination explains that, for the purposes of subsection 115-228(1) of the Income Tax Assessment Act 1997, a beneficiary of a trust estate can be reasonably expected to receive an amount of a financial benefit referable to a capital gain made by the trust estate in an income year even though the fact that the capital gain is made is not established until after the end of the income year.

 

TD 2011/16

This determination is about the factors the Commissioner will take into account in determining the amount of any deemed payment or notional loan arising under section 109T of the Income Tax Assessment Act 1936.

 

TD 2001/15

This determination is about the factors the Commissioner will take into account in determining the amount of any deemed entitlement arising under section 109XI of the Income Tax Assessment Act 1936.

 

TD 2009/19

 This determination is about whether a taker in default of trust capital has an ‘interest in the trust capital’ for the purposes of CGT event E8 in section 104-90 of the Income Tax Assessment Act 1997.

 

TD 2009/17

 

This determination is about whether interest on a loan is fully deductible under section 8-1 of the Income Tax Assessment Act 1997 when the borrowed moneys are settled by the borrower on trust to benefit the borrower and others.

 

TD 2006/71

This determination explains that the part of a payment which is a small business 50% reduction amount is a non-assessable part under CGT event E4 in section 104-70 of the Income Tax Assessment Act 1997.

 

TD 2004/3

This determination indicates that an asset will ‘pass’ to the beneficiary of a deceased estate when the beneficiary becomes absolutely entitled to the asset as against the estate’s trustee (whether or not the asset is later transmitted or transferred to the beneficiary).

 

TD 2003/28

This determination considers whether CGT event E4 in section 104-70 of the Income Tax Assessment Act 1997 happens if the trustee of a discretionary trust makes a non-assessable payment to:

a mere object; or

a default beneficiary.

 

TD 2001/26

This determination explains the capital gains tax consequences for a beneficiary of a discretionary trust who renounces their interest in the trust

 

TD 1999/73

This determination explains that land under a unit of accommodation is not exempt under the main residence exemption under Subdivision 118-B in Part 3-1 of the Income Tax Assessment Act 1997 if the the unit of accommodation is sold separately from the land.

 

TD 1999/67

This determination explains that you can apply the main residence exemption in Subdivision 118-B of the Income Tax Assessment Act 1997 to whichever area of land you choose in addition to the land on which your dwelling is situated. The total of the land (including the land on which the dwelling is situated) must not exceed 2 hectares.

TD 1999/68

This determination explains that ‘adjacent’ land in terms of section 118-120 of the Income Tax Assessment Act 1997 is not limited to land contiguous to a dwelling.