Private ruling: Commissioner's discretion - section 99A
Date of advice: 22 December 2022
Published: 20 February 2023
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion for the executor to be assessed under section 99 of the Income Tax Assessment Act 1936 (ITAA 1936) for the income years ended 30 June 20XX, 30 June 20XX and 30 June 20XX? | 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 died recently. The assets of the deceased's Estate consist of cash, shares and property. The Estate holds no shares or special rights in any private companies. No transfers of property (including money) have been made to or from the Estate during its administration. No special rights or privileges have been attached to or conferred on the property of the Estate. Amounts have been transferred from the deceased's bank accounts and superannuation accounts to the Estate. Property has yet to be formally transferred to the Estate by way of a transmission application with the relevant state government authority.

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