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Edited version of private advice
Authorisation Number: 1051616392143
Date of advice: 3 December 2019
Ruling
Subject: Trust - income - 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 period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Testamentary Trust (the trust) was created by the will of the deceased who died on XX month 20XX.
The trust was established for the benefit of one of the deceased's family members.
The trust's only assets were distributed from the deceased's estate under the will and there has been no injection or contribution of additional assets to the trust.
The trust is an Australian resident for tax purposes.
There is no beneficiary presently entitled to the income of the trust.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 section 99A