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on 12 November 201908:23 PM - last edited on 27 April 202008:41 AM by ClareH
If a trust makes a capital gain on the sale of shares and distributes the capital and income to a beneficiary (who is Australian resident), is he entitled to a 50% CGT exemption?
Consider the case where the corporate trustee is a foreign company (incorporated overseas), but the director, shareholder are citizens and residents of Australia and the CMC (centre of management control) is in Australia.
According to the ATO*, in case 2, the foreign trustee would be Australian tax resident for tax purposes so presumably the beneficiary is still entitled to the 50% CGT discount – correct?
Would there be any negative tax outcomes from this structure?