Private ruling: Trust - section 99A
Date of advice: 12 September 2019
Published: October 2019
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024 | Year ending 30 June 2025
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise discretion under section 99A of the Income Tax Assessment Act 1936 (ITAA 1936) to tax the net income of the trust estate to which no beneficiary is presently entitled under 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 testamentary trust. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The deceased died on XX September 20XX A testamentary trust has been created through the deceased's Will. The only assets of the trust are those transferred from the deceased's estate upon settlement. There has been no property transferred to the trust estate and no loans have been entered into by the trust. The trustee has the discretion to retain and accumulate the income of the trust. The vesting date for the trust is 80 years after the deceased's death.

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