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Edited version of your written advice
Authorisation Number: 1051409598155
Date of advice: 8 August 2018
Ruling
Subject: Commissioner’s discretion
Question
Will the Commissioner exercise his discretion under subdivision 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive individual rates of tax as per section 99 of the ITAA 1936?
Answer
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:
Financial year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away.
The Estate currently consists of a collection of managed funds and some capital funds being held in the Estate bank account.
The will provided a life interest to one of the beneficiaries.
The residuary of the estate is divided into several equal parts.
Any income earned after costs have been deducted is passed on to the income beneficiary.
Assets have been acquired after the deceased passed away, however no money has been injected into the estate.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 99
Income Tax Assessment Act 1936 Section 99A