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Edited version of private advice

Authorisation Number: 1052510506439

Date of advice: 20 March 2026

Ruling

Subject: Assessable income

Question 1

Are the dividends notified via a dividend notice, but not received in cash or credited to loan accounts, included in the assessable income of the deceased Estate for the 20XX income year under section 44 of the Income Tax Assessment Act 1936 (ITAA 1936)?

Answer

No

This ruling applies for the following period:

Income year ended 30 June 20XX

Relevant facts and circumstances

1.               The Estate recently dividend notices dated DD MM 20XX for purported amounts declared in 20XX, despite never receiving or being credited with any dividends.

2.               The Estate owns issued capital in Company A.

3.               The Estate owns issued capital in Company B.

4.               For the 20XX income year, the Estate recently received dividend notices showing dividends declared to them by both companies.

5.               The Estate has not received any of the dividends in cash.

6.               The dividends have not been credited to the Estate in the financial statements of either company.

7.               The Estate has never agreed to loan funds to the companies or to any other party.

8.               No payment or credit has ever been made to the Estate for the dividends purported in 20XX.

9.               The Estate has been unable to obtain an explanation from the directors of either company.

Relevant legislative provisions

Income Tax Assessment Act 1936 section 44 (ITAA 1936)