Private ruling: Commissioner's discretion - deceased estate
Date of advice: 8 August 2023
Published: 25 September 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion not to apply the provisions of section 99A of the Income Tax Assessment Act 1936 (ITAA 1936) and assess the trust estate under section 99 of the ITAA 1936? | A1: Yes. Having regards to the circumstances the Commissioner will exercise the discretion to assess the income of the trust in accordance with section 99 of the ITAA 1936

Relevant facts and circumstances: The deceased died on X XX 20XX. Probate was granted on X XX 20XX. The testamentary trust was established under the will of the deceased. It is intended that the testamentary trust will retain the profits generated by the trust, be subject to tax, and re-invest the net proceeds in the trust. There are no special rights or privileges that attach to any assets of the testamentary trust. The testamentary trust has not made or received any loans. No money or property, other than from the deceased estate, has been transferred to the testamentary trust.

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