# Forensic Questions — Bounty #08

**Companion file to:** `01-brief.md`

Seven questions. Q4 is the load-bearing. Q7 is the open finder.

## Q1 (easy) — Which sub-section for a discretionary trust

Does s 152-105 (individual) or s 152-110 (company/trust) apply to a discretionary trust like the Wilson Family Trust?

## Q2 (easy) — 15-year measurement

Is the 15-year period measured from the date the trust acquired the shares (2008) or from some earlier point (e.g. when Bob commenced business)?

## Q3 (medium) — Significant individual definition

Under s 152-55, what makes Bob a "significant individual" of the trust? Does he need to be a beneficiary, or does his controlling-influence over the trustee suffice?

## Q4 (load-bearing) — Active asset test for the shares

Under s 152-40(3), when do shares in a company qualify as an active asset? Given that the underlying company (Wilson Trading Pty Ltd) is actively carrying on business, is the test automatically satisfied, or is there a threshold test on the balance sheet composition?

_(Reviewers should trace through the "80% test" — market value of active assets ≥ 80% of total market value — and comment on how it applies to Wilson Trading's balance sheet.)_

## Q5 (medium) — Retirement nexus

Bob is 68 and stated to be "retiring". Is his mere statement of intent sufficient, or does the ATO require a demonstrable step-down from active business involvement? What if Bob remains a $1,000-per-annum non-executive advisor?

## Q6 (medium) — Distribution to Bob

Post-disposal, the trust holds ~$4.2M in cash. Assuming the trustee distributes this to Bob:
- Is the distribution itself a further CGT event?
- Does s 152-125 (payments through interposed entities) apply?
- Is there a time limit for the distribution to preserve the exemption benefit?

## Q7 (open) — What have I missed?

What edge case or additional authority would you want a calculator to test that this brief has not surfaced?

Candidates:
- Multi-generation asset holding (asset acquired by earlier trustee, current trustee inherited)
- Change of trust structure during the 15-year period
- Partial disposal (sell 60% of shares, retain 40%)
- Roll-over into a replacement asset before the 15-year mark expired