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Edited version of your written advice
Authorisation Number: 1051180502226
Date of advice: 13 January 2017
Ruling
Subject: Income - deceased estate - lodgement
Question 1
Are the Administrators of the deceased's estate required to lodge outstanding annual income tax returns on behalf of the deceased?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
The scheme commences on:
1 July 2006
Relevant facts and circumstances
The deceased died in June 2016.
The Administrators have been granted as Administrators of the deceased's estate.
The Administrators discovered that the deceased had not lodged income tax returns for a number of years prior to their death; however they have no documentation providing which income tax returns are outstanding.
The Administrators are aware that the deceased received wage and salary income, rental income from investment properties, divided income and interest income in the years prior to their death.
Information on the deceased's income was sourced from Australian Tax Office (ATO) systems and the Administrators confirmed that this information is to be included in the ruling.
It has been confirmed through ATO systems that the deceased has not lodged a return since the 199X-9X financial year.
The Administrators have not provided rental income information.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 161(1)
Reasons for decision
The requirement to lodge tax returns is provided by section 161 of the Income Tax Assessment Act 1936. Subsection 161(1) state that every person must lodge a tax return for a given financial year, if required by the Commissioner by notice in the Gazette.
The requirement to lodge a return includes the following Individuals:
● Australian residents whose total taxable income for the year from all sources exceeds the standard tax-free threshold for that year.
● 2006-07 to 2011-12 years - $6,000 tax-free threshold
● 2012-13 to 2015-16 years - $18,200 tax-free threshold
● Australian residents who paid tax under the pay as you go (PAYG) withholding or instalment system, or had tax withheld from payments made to you.
In your case, the deceased has income from all sources above that of the tax-free threshold for the 2006-07 to 2015-16 financial years and/or has as PAYG withholding and tax withheld from payments made over this time. The Administrators of the deceased's estate will be required to lodge tax returns for the 2006-07 financial year to the 2015-16 financial year inclusive.
The Administrators will also need to source rental income records for the deceased or reconstruct these records to include rental income in the relevant years' returns.