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Edited version of private advice
Authorisation Number: 1051921157309
Date of advice: 15 November 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 estates in relation to the relevant year of income. Accordingly, section 99 of the ITAA 1936 will apply.
This ruling applies for the following periods:
Financial year ended 30 June XXXX
The scheme commences on:
1 July XXXX
Relevant facts and circumstances
The deceased died in the XXXX financial year
The deceased executed a will dated xx xx xxxx.
The will appointed an Executrix. A testamentary trust was established for each of the deceased's two children who were aged under 25 years in accordance with the will.
The testamentary trusts are only made up of the deceased's assets and any accumulated income that was earned by the deceased estate or testamentary trusts from those assets.
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)