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Edited version of private advice
Authorisation Number: 1051887536995
Date of advice: 19 August 2021
Ruling
Subject: Commissioner's discretion - sections 99/99A
Question
Will the Commissioner exercise his discretion under subsection 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 the 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:
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died during the 20XX-XX financial year.
The original executor had no legal or financial training.
Probate was granted during the 20XX-XX financial year.
One of the beneficiaries commenced proceedings at the Supreme Court seeking removal of the original executor and trustee due to the time they took to apply for probate, the time they were taking to administer the Estate and possible improper dealings in relation to the Estate.
A new executor was appointed pursuant to orders by the Supreme Court during the 20XX-XX financial year.
The current executor is in the process of trying to finalise the administration of the Estate and bring all tax related affairs up to date.
The court appointed executor and the new tax agents have had extreme difficulty in getting the past records of the Estate from the former executor and their advisors.
The court appointed executor and the new tax agents are not aware or any property or funds being acquired by or intentionally lent to the Estate.
The income of the Estate is only derived from assets held or deemed to belong to the Estate as at the date of death of the deceased.
No special rights or privileges have been conferred or attached to the assets of the Estate.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 subsection 99A(2)