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Edited version of private advice
Authorisation Number: 1051580574435
Date of advice: 12 September 2019
Ruling
Subject: Trust - section 99A
Question
Will the Commissioner exercise discretion under section 99A of the Income Tax Assessment Act 1936 (ITAA 1936) to tax the net income of the trust estate to which no beneficiary is presently entitled under 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 the testamentary trust. Accordingly section 99 of the ITAA 1936 will apply.
This ruling applies for the following periods:
Year ending 30 June 2018
Year ending 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
Year ending 30 June 2025
The scheme commences on:
1 July 2017
Relevant facts and circumstances
The deceased died on XX November 20XX
A testamentary trust has been created through the deceased's Will.
The only assets of the trust are those transferred from the deceased's estate upon settlement.
There has been no property transferred to the trust estate and no loans have been entered into by the trust.
The trustee has the discretion to retain and accumulate the income of the trust.
The vesting date for the trust is 80 years after the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 99
Income Tax Assessment Act 1936 Section 99A