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Edited version of your written advice
Authorisation Number: 1051449288052
Date of advice: 1 November 2018
Ruling
Subject: Section 99A – 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 period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died on XX/XX/20XX.
Administration of the deceased estate is ongoing.
A Testamentary Trust was established under the deceased’s will for the benefit of the deceased’s family member, B as the sole beneficiary.
Under the deceased’s will, the beneficiary is not entitled to the income of the trust until they attain 25 years of age.
The beneficiary was born on XX/XX/XXXX.
Income of the Trust will accrue in the trust until the beneficiary attains 25 years.
No other funds from outside the deceased estate will be brought into the estate or into the trust.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 section 99A