28 May 09 Limited CGT roll-over for fixed trusts with same beneficiariesIn the 2009-2010 Budget the Government announced a limited CGT roll-over for fixed trusts with the same beneficiaries. The amendment will apply to CGT events happening after 31 October 2008.
The ATO advises that taxpayers affected by the announcement that are self-assessing before the proposed change becomes law should apply the existing law. When the law is enacted, they should then seek an amendment to their assessment.
If a taxpayer chooses to self-assess by anticipating the announcement, the taxpayer will need to review the assessment when the law is enacted. If the change has been anticipated correctly, no further action will be required. If the taxpayer does not anticipate the change correctly, the taxpayer will need to seek
an amendment to the assessment.
If the amendment reduces tax liability, the taxpayer will be entitled to interest on overpayments. If the amendment increases liability, the taxpayer will not be subject to tax shortfall penalty and, provided the amendment is made within a reasonable time, GIC will be remitted to nil.
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