From cathropartners.com.au: A discussion of private tax ruling regarding the tax obligations under section 254 of the Income Tax Assessment Act (ITAA 1936) following the sale of a property by Mr. and Mrs. Smith before their bankruptcy declaration.

The ruling clarified that the trustees did not derive any taxable income from the sale as the capital gain occurred prior to their appointment and was not attributable to them.

This outcome emphasizes the importance of timing in determining tax liabilities for trustees in bankruptcy cases, confirming that they are not personally liable for pre-appointment activities.