Private ruling: CGT - deceased estate
Date of advice: 7 August 2023
Published: 18 September 2023
Ruling period: Year ended 30 June 2023
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise his discretion under subdivision 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 that 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 died several years ago. The testamentary trust resulted from the deceased's will. The assets of the deceased's estate were transferred to the testamentary trust. No other funds from outside the deceased estate will be brought into the estate or into the trust. The trust 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