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ATO Interpretative Decision

ATO ID 2002/465 (Withdrawn)

Income Tax

Liability to Medicare Levy - trustee of deceased estate
FOI status: may be released
  • This ATO ID is a straight application of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the Medicare levy imposed under section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) on the income of a deceased estate assessed to the trustee under either section 99 or section 99A of the ITAA 1936?

Decision

No. The Medicare levy is not imposed under section 251S of the ITAA 1936 on the income of a deceased estate assessed to the trustee under either section 99 or section 99A of the ITAA 1936.

Facts

The taxpayer is the trustee of a deceased estate.

The trustee will be taxable on the income of the trust under either section 99 or section 99A of the ITAA 1936.

Reasons for Decision

Section 251S of the ITAA 1936 provides that the Medicare levy will be imposed upon:

•
the taxable income of a person (not being a company or person in the capacity of a trustee) who was a resident of Australia at any time during the income year;
•
the income of a trust estate where the trustee is required to be assessed under section 98 of the ITAA 1936 in respect of a share of the net income to which a resident beneficiary is presently entitled; or
•
the income of a trust estate (other than a trust estate of a deceased person) where the trustee is required to be assessed under either section 99 or section 99A of the ITAA 1936 in respect of whole or part of the net income of the trust estate.

The Medicare levy is not imposed on taxpayers who do not fall into one of these categories.

The taxpayer is the trustee of a deceased estate who will be taxed under either section 99 or 99A of the ITAA 1936. As the income does not fall into one of the above categories, the Medicare levy will not therefore be imposed on the income of the deceased estate.

(Note: As there is no Medicare levy imposed on this income, the Medicare levy surcharge will also not be imposed under the Medicare Levy Act 1986).

Date of decision:  21 December 2001

Year of income:  Year ended 30 June 2001

Legislative References:
Income Tax Assessment Act 1936
   section 98
   section 99
   section 99A
   section 251S

Medicare Levy Act 1986
   The Act

Keywords
Medicare levy
Deceased estates
Medicare levy surcharge

Business Line:  Small Business/Individual Taxpayers

Date of publication:  17 April 2002

ISSN: 1445-2782

history
  Date: Version:
  21 December 2001 Original statement
You are here 26 August 2005 Archived

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