Private ruling: Section 99A - Commissioner's discretion
Date of advice: 26 August 2019
Published: October 2019
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 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
Date scheme commenced: 1 July 2016

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 in 2016. 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