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Is the trustee of a deceased entitled to a lump sum payment in arrears tax offset under section 159ZRA of the Income Tax Assessment Act 1936 (ITAA 1936)?

No. The trustee of the estate of a deceased is not entitled to a lump sum payment in arrears tax offset under section 159ZRA of the ITAA 1936.

The taxpayer is the trustee of a deceased estate.

The income of the trust included an assessable lump sum payment.

The trustee will be assessable on this income as income to which no beneficiary is presently entitled.

Section 159ZRA of the ITAA 1936 allows a lump sum payment in arrears tax offset where the taxpayer's assessable income in a year of income includes one or more eligible lump sums.

However, subsection 159ZRA(2) of the ITAA 1936 specifically provides that the taxpayer must be a natural person (otherwise than in the capacity of a trustee).

Accordingly, the taxpayer, as trustee of the estate, is not eligible to the lump sum in arrears tax offset under section 159ZRA of the ITAA 1936.