Private ruling: Trust income - taxed as income in individual - section 99
Date of advice: 20 September 2019
Published: December 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner their 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? | 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 the trust. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased died on XX/XX/XXXX. Under the deceased's will, 1/5 th of their residuary estate is to be held on trust for their grandchildren until they attain the age of 25 (the Trust). The only assets of the Trust are those transferred from the deceased's estate upon settlement. There has been no property transferred to the Trust and no loans have been entered into by the Trust. The Trustee has the discretion to retain and accumulate the income of the trust. For each of the years of the ruling, the Trust will have income to which no beneficiary is presently entitled.

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