Private ruling: Commissioner’s discretion
Date of advice: 5 March 2018
Published: June 2018
Ruling period: Financial year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 99A of the Income Tax Assessment Act 1936 (ITAA 1936) to tax the trustee on income that no beneficiary is presently entitled to under section 99 of the ITAA 1936? | A1: Yes. Having regarded your full circumstances, the Commissioner considers it unreasonable to apply section 99A of the ITAA 1936 in relation to that trust for the relevant years of income.

Relevant facts and circumstances: The deceased passed away in 20XX. At the time of their death, the deceased’s assets consisted of X. The executor has experienced health issues that have rendered them unable to conduct the administration of the estate. Their condition has since improved and the complete administration of the estate is again underway. During the period from the date of death until now, the following applied at all times: ● the income of the estate is derived from assets held by the estate after the death of the deceased; ● the executors have not borrowed from others; ● the executors have not lent money to others; ● there have been no assets transferred into the estate since the date of death; ● there are no special rights or privileges attached to the property of the estate; ● the estate resulted from a Will. It is expected that administration of the estate will be finalised by 30 June 20XX.

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