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Edited version of private advice
Authorisation Number: 1052074279073
Date of advice: 11 January 2023
Ruling
Subject: Commissioner's discretion
Question
Will the Commissioner exercise his discretion under subsection 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) for the year ended 30 June 20XX?
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 Trustees of the Trust in the relevant income years. Accordingly, section 99 of the ITAA 1936 will apply.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away early 20XX.
The will of the deceased is dated mid 20XX.
The will established the Trust. The Codicil gave the Trust a X% ownership interest in the property.
You were nominated as the trustee of the Trust.
The will granted a life interest to Person A who is still living in the property. Therefore, the Trust has not received any proceeds from the property.
The Trust was also given X% of the residue of the deceased's estate.
The Trust has only received funds from the deceased's estate and not received funds from any other sources.
The only income the Trust has received is from units in an investment fund. The investment was acquired using funds from the estate.
You have not distributed income in the income year ending 30 June 20XX to any of the beneficiaries. You used the Trust's income to acquire more units in the investment fund.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99A