Private ruling: Commissioner’s discretion
Date of advice: 8 August 2018
Published: September 2018
Ruling period: Financial year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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: 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 year of income. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The deceased passed away. The Estate currently consists of a collection of managed funds and some capital funds being held in the Estate bank account. The will provided a life interest to one of the beneficiaries. The residuary of the estate is divided into several equal parts. Any income earned after costs have been deducted is passed on to the income beneficiary. Assets have been acquired after the deceased passed away, however no money has been injected into the estate.

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