Capital Gains Tax (CGT) 2013

Legislating ATO practice - The good and the bad for practitioners

Source: Taxation In Australia Journal Article

Published Date: 1 Dec 2013


Among the backlog of announced tax measures which the federal government intends to review in the near future is measure 63, a proposal which relates to allowing a testamentary trust to distribute the assets of a deceased person without CGT implications. The intention in measure 63 was to formally legislate ATO practice and remove any uncertainty about the ATO approach being in accordance with the CGT legislation. The current ATO practice of allowing a testamentary trust to distribute an asset of a deceased person without a CGT taxing point is outlined in PS LA 2003/12.

This article examines the ATO practice and the legislative proposal. The author concludes that the approach embodied in PS LA 2003/12 is flawed and would have no basis in law. It appears that the ATO has substantially realised that its approach to the CGT treatment of a trustee of a testamentary trust is not in accordance with the law.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Capital Gains Tax (CGT) 2013

Share this page