2016 Income tax Capital Gains Tax (CGT)

Trust beneficiaries and exemptions from CGT: Reflections on the Oswal litigation

Source: Taxation In Australia Journal Article

Published Date: 1 Dec 2016


A recent high-profile case litigated in the Federal Court promised to provide much needed judicial guidance on the availability of capital gains tax relief to temporary and foreign resident beneficiaries of Australian resident trusts. Additionally, it was expected that the scope of the role of s 115-215 of the Income Tax Assessment Act 1997 when assessing trust beneficiaries would be clarified by the decision. Following settlement of the dispute, these issues now must await fresh litigation. Perhaps this is to be expected, given the dismal state of the broader taxation legislation that applies to trusts. The plethora of rule changes over the last 20 years, accompanied by ambivalent text in explanatory memoranda, have left the area ripe for reform. This article explores the trust tax issues at stake in the Oswal case and the submissions put by the parties to the court, as well as the policy issues surrounding the availability of the CGT jurisdictional exemptions more generally.

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.


2016 Income tax Capital Gains Tax (CGT)

Share this page