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Edited version of private advice
Authorisation Number: 1051567130964
Date of advice: 26 August 2019
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
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 years of income. Accordingly section 99 of the ITAA 1936 will apply.
This ruling applies for the following periods:
Year ended 30 June 2017
Year ended 30 June 2018
Year ended 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
Year ending 30 June 2023
Year ending 30 June 2024
The scheme commences on:
1 July 2016
Relevant facts and circumstances
The deceased died in 2016.
The testamentary trust resulted from the deceased's Will.
The assets of the deceased's estate were transferred to the testamentary trust.
No other funds from outside the deceased estate will be brought into the estate or into the trust.
The trust has not borrowed or lent any money.
No special rights or privileges have been conferred or attached to the assets of the deceased estate.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 section 99A