Trust taxation follows individual rate where will-based trust facts were already accepted and no new facts arose.

A trust created under a Will was discussed as being taxable at the rate applicable to an individual rather than at the maximum marginal rate. The analysis notes that the same trust documents had already been verified in a subsequent assessment year, where the Department accepted individual-rate taxation on identical foundational facts. On that basis, the Revenue could not adopt a contrary position for the year in question in the absence of any change in facts or law. It was also stated that, once the relevant documents were on record, the correct tax liability could be determined on merits and not defeated by a technical rectification objection.

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Issues: Whether the assessee trust was liable to be taxed at the maximum marginal rate or at the rate applicable to an individual, and whether the dispute could be sustained in rectification proceedings.

Analysis: The trust had been created under a Will, and the same trust documents had already been examined in the assessee's own subsequent assessment year, where the Department accepted the claim and applied the rate applicable to an individual after verification. In the absence of any change in the foundational facts or statutory position, the Tribunal held that the Revenue could not take a contrary stand for the year under consideration. The Tribunal also observed that, once the relevant documents were before it, the correct tax liability could be determined on merits and the levy at the maximum marginal rate could not be sustained merely on a technical rectification objection.

Conclusion: The assessee was held entitled to taxation at the rate applicable to an individual, and the contrary approach of taxing the trust at the maximum marginal rate was set aside.

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