Private ruling: Section 99A - Commissioners Discretion
Date of advice: 31 July 2019
Published: September 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive concessional rates of tax as per section 99 of the ITAA 1936? | A1: 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 that trust estate in relation to the relevant year of income. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The Deceased) passed away on XX December 20XX. The deceased left a Will, naming beneficiaries and executors of will. In accordance with the Will, the assets of The Estate were provided for the spouse's benefit, as a life tenant. Grant of Probate was issued on the XX July 20XX. Upon the spouse's passing on XX December 20XX, the deceased's children are the remainder beneficiaries with equal shares of the Estate. The deceased left a personal estate to the value of approximately $X. Administration of the deceased estate is still ongoing. Following the Deceased's death, the Executors of the Will made enquiries about the extent of the Deceased's assets with the parent, the accountant and solicitor who acted for the Deceased. After the death of the spouse, new advisors were appointed for the Estate. There have been delays which have slowed the administration process and an administrator of the Estate was appointed. The Estate has not lodged any tax returns since the Deceased passed away but is intending to lodge tax returns until administration is complete. No financial accounts for the Estate have been prepared as previously. There are no special rights attached to the shares either directly or indirectly. No loans have been made by relatives of the beneficiaries or other persons not at arm's length.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 99 | Income Tax Assessment Act 1936 section 99A