| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051559036802
Date of advice: 31 July 2019
Ruling
Subject: Section 99A - Commissioners Discretion
Question
Will the Commissioner exercise the discretion under subsection 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive concessional rates of tax as per section 99 of the ITAA 1936?
Answer
Yes.
After consideration of the relevant factors, the Commissioner is of the opinion that it would be unreasonable that section 99A of the ITAA 1936 should apply in relation to that trust estate in relation to the relevant year of income. Accordingly section 99 of the ITAA 1936 will apply.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Deceased) passed away on XX December 20XX.
The deceased left a Will, naming beneficiaries and executors of will.
In accordance with the Will, the assets of The Estate were provided for the spouse's benefit, as a life tenant.
Grant of Probate was issued on the XX July 20XX.
Upon the spouse's passing on XX December 20XX, the deceased's children are the remainder beneficiaries with equal shares of the Estate.
The deceased left a personal estate to the value of approximately $X.
Administration of the deceased estate is still ongoing.
Following the Deceased's death, the Executors of the Will made enquiries about the extent of the Deceased's assets with the parent, the accountant and solicitor who acted for the Deceased.
After the death of the spouse, new advisors were appointed for the Estate.
There have been delays which have slowed the administration process and an administrator of the Estate was appointed.
The Estate has not lodged any tax returns since the Deceased passed away but is intending to lodge tax returns until administration is complete.
No financial accounts for the Estate have been prepared as previously.
There are no special rights attached to the shares either directly or indirectly.
No loans have been made by relatives of the beneficiaries or other persons not at arm's length.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 section 99A
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
