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09 Jul 09 CGT event E8: interest of taker in default of trust capital - TD 2009/D3

This draft Taxation Determination was released on 8 July 2009 for public comment by 7 August 2009. Its full title is "Income tax: does a taker in default of trust capital have an 'interest in the trust capital' for the purposes of CGT event E8 in section 104-90 of ITAA 1997?"

The answer given to the question is No and the following reason is given:

"Having regard to the provisions of sections 104-90, 104-95 and 104-100 of the ITAA 1997, only those interests which constitute a vested and indefeasible interest in a share of the trust capital fall within the scope of CGT event E8. The interest of a taker in default of the trust capital is defeasible because the trustee may resolve to appoint the capital to another beneficiary."

For a copy of TD 2009/D3, go here


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