Published on 07 Aug 09
by THE TAX INSTITUTE
The Professional Bodies agree with the approach taken in the draft determination to the characterisation of situations where CGT Event E8 will apply. That is, we agree that CGT Event E8 should be limited to situations where the relevant beneficiary has a vested and indefeasible interest in the relevant share of trust capital. We agree that a taker in default of trust capital where the trustee may appoint capital to persons other than that beneficiary does not have an indefeasible interest.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
NATIONAL INSTITUTE OF ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA