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Edited version of your written advice
Authorisation Number: 1051424259459
Date of advice: 14 November 2018
Ruling
Subject: Trust - section 99A
Question
Will the Commissioner exercise his discretion not to apply the provisions of section 99A of the Income Tax Assessment Act 1936 (ITAA 1936) and assess the trust estate under section 99 of the ITAA 1936?
Answer
Yes.
Having considered the relevant factors, the Commissioner is of the opinion that it would be unreasonable not to apply the rates of tax under section 99 of the ITAA. Further information on the rates of tax that will apply can be found by searching ‘QC 49909’ on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2016
Relevant facts and circumstances
The deceased passed away in 20XX.
Pursuant to the Will of the deceased a Testamentary trust was established.
The purpose of the testamentary trust is to hold the trust funds on trust for the beneficiaries as per the Will.
The trustee of the Testamentary trust is a child of the deceased.
The assets of the deceased’s estate were transferred to the Testamentary Trust.
No other amounts have been transferred to the Testamentary Trust other than from the deceased estate.
All income earned on the assets of the estate has either been reinvested into the existing assets or placed into the Testamentary Trusts account for the benefit of the beneficiaries.
Amounts have been withdrawn over time to be applied for the benefit of the beneficiaries.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 99
Income Tax Assessment Act 1936 Section 99A
Income Tax Assessment Act 1936 Subsection 99A(2)