Private ruling: Deceased estate, sections 99 and 99A(2)
Date of advice: 28 May 2019
Published: November 2019
Ruling period: 1 July 2014 to 30 June 2019
Date scheme commenced: 1 July 2014

Ruling: Q1: Will the Trustee be assessed under section 99 on the net income of the Estate where no part of the income is paid to a beneficiary before the administration of the Estate is completed? | A1: Yes, after consideration of all 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 for the relevant years of income. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The deceased passed away in 20XX, leaving the last Will dated 20XX (a copy of the Will and the probate has been provided). Following a dispute between the executor of the Estate and the Trustee regarding the entitlements of the deceased's partner under the Will delays were experienced. Under the Will, each Testamentary Trust is a beneficiary of an equal share of the residue of the Estate after specific entitlements and gifts are dealt with. The capital of the Estate is sufficient to settle the beneficiaries' entitlements payable under the Will. Details of the assets of the Estate were provided. The Estate has not distributed income to the Testamentary Trusts. The Estate is under administration and the residue of the Estate is yet to be determined. Part of the Will specifically directs net profits from the sale of real estate to be reinvested as part of the residue of the Estate.

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