Private ruling: Commissioner's discretion under section 99
Date of advice: 25 February 2021
Published: April 2021
Ruling period: Year ended 30 June 20XX to Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive individual 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 the trust estate in relation to the relevant years of income. Accordingly, section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The deceased passed intestate on xx xxx xxxx. The deceased was the sole owner of a rental property. The deceased's spouse continued to rent out the property until their death on xx xxx xxxx. The spouse also died intestate. The spouse did not attend to the deceased's affairs after the deceased's death due to a lack of education and language/cultural barriers. The spouse's only income was from the age pension. After the deceased's spouse's death, one of their adult children applied to the courts and was appointed administrator of both estates in xxxx. Title to the property has been transferred to the administrator of the estate of the first deceased (the deceased estate). Administration of the deceased estate has been delayed due to family conflict. The property was the only income producing asset of the deceased estate. The remainder of the deceased estate consisted of personal effects. No other funds from outside the deceased estate have or will be brought into the deceased estate. The deceased estate has not borrowed or lent any money. No special rights or privileges have been conferred or attached to the assets of the deceased estate.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 99 | Income Tax Assessment Act 1936 section 99A | Income Tax Assessment Act 1936 subsection 99A(2)