Private ruling: Commissioner's discretion - deceased estate
Date of advice: 10 May 2022
Published: July 2022
Ruling period: The year ended 30 June YYYY | The year ended 30 June YYYY | The year ended 30 June YYYY | The year ended 30 June YYYY
Date scheme commenced: DD/MM/YYYY

Ruling: Q1: Will the Commissioner exercise his discretion for the executor to be assessed under section 99 of the Income Tax Assessment Act 1936 for the income years ended 30 June YYYY, 30 June YYYY, 30 June YYYY and 30 June YYYY? | A1: Yes. Taking into account the matters set out in subsection 99A(3) of the Income Tax Assessment Act 1936 (ITAA 1936), the Commissioner has formed the opinion that it would be unreasonable that the penalty rate under section 99A of the ITAA 1936 apply in the present circumstances. Therefore, the Commissioner will exercise his discretion to assess the executor under section 99 of the ITAA 1936.

Relevant facts and circumstances: The deceased passed away on DD/MM/YYYY. The estate holds no shares or special rights in any private companies. There were no loans made to or by the estate during its administration. No money or property has directly or indirectly been transferred to the estate, similarly, there have been no special privileges in relation to the estate or property of the estate. The administration of the estate is nearing completion. The executors are awaiting the determination of the estate's income tax liability before making distributions to the estate's beneficiaries.

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