Private ruling: Income - deceased estate - lodgement
Date of advice: 13 January 2017
Published: June 2017
Ruling period: Year ended 30 June 2007 | Year ended 30 June 2008 | Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016
Date scheme commenced: 1 July 2006

Ruling: Q1: Are the Administrators of the deceased's estate required to lodge outstanding annual income tax returns on behalf of the deceased? | A1: Yes

Relevant facts and circumstances: The deceased died in June 2016. The Administrators have been granted as Administrators of the deceased's estate. The Administrators discovered that the deceased had not lodged income tax returns for a number of years prior to their death; however they have no documentation providing which income tax returns are outstanding. The Administrators are aware that the deceased received wage and salary income, rental income from investment properties, divided income and interest income in the years prior to their death. Information on the deceased's income was sourced from Australian Tax Office (ATO) systems and the Administrators confirmed that this information is to be included in the ruling. It has been confirmed through ATO systems that the deceased has not lodged a return since the 199X-9X financial year. The Administrators have not provided rental income information.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 161(1)

Reasons for decision: Summary: The requirement to lodge tax returns is provided by section 161 of the Income Tax Assessment Act 1936. Subsection 161(1) state that every person must lodge a tax return for a given financial year, if required by the Commissioner by notice in the Gazette . The requirement to lodge a return includes the following Individuals: ● Australian residents whose total taxable income for the year from all sources exceeds the standard tax-free threshold for that year. ● 2006-07 to 2011-12 years - $6,000 tax-free threshold ● 2012-13 to 2015-16 years - $18,200 tax-free threshold ● Australian residents who paid tax under the pay as you go (PAYG) withholding or instalment system, or had tax withheld from payments made to you. In your case, the deceased has income from all sources above that of the tax-free threshold for the 2006-07 to 2015-16 financial years and/or has as PAYG withholding and tax withheld from payments made over this time. The Administrators of the deceased's estate will be required to lodge tax returns for the 2006-07 financial year to the 2015-16 financial year inclusive. The Administrators will also need to source rental income records for the deceased or reconstruct these records to include rental income in the relevant years' returns.