INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 768 - Foreign non-assessable income and gains  

Subdivision 768-B - Some items of income that are exempt from income tax  

SECTION 768-105   Compensation arising out of Second World War  

768-105(1)  
A payment to you is exempt from income tax if:


(a) you are an Australian resident at the time when it would otherwise be included in your assessable income; and


(b) the payment is from a source in a foreign country; and


(c) the payment is in connection with:


(i) any wrong or injury; or

(ii) any loss of, or damage to, property; or

(iii) any other detriment;
suffered by you or another individual as a result of:

(iv) persecution by the National Socialist regime of Germany during the National Socialist period; or

(v) persecution during the Second World War by any other enemy of the Commonwealth or by a regime covered by subsection (3); or

(vi) flight from persecution mentioned in subparagraph (iv) or (v); or

(vii) participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany or against forces of any other enemy of the Commonwealth; and


(d) the payment is not directly or indirectly from any of your *associates.

Note:

An example of a detriment covered by subparagraph (c)(iii) is if you lost the opportunity to qualify for a pension because your period of contribution was cut short because you had to flee persecution by the National Socialist regime.

Duration of Second World War

768-105(2)  
Subsection (1) applies to:


(a) the period immediately before the Second World War; and


(b) the period immediately after the Second World War;

in the same way as it applies to the period of the Second World War.

Regimes associated with an enemy of the Commonwealth

768-105(3)  
This subsection covers a regime that was:


(a) in alliance with; or


(b) occupied by; or


(c) effectively controlled by; or


(d) under duress from; or


(e) surrounded by;

either or both of the following:


(f) the National Socialist regime of Germany;


(g) any other enemy of the Commonwealth. Legal personal representative

768-105(4)  
Subsection (1) applies to a payment to:


(a) your *legal personal representative; or


(b) a trust established by your will;

in a corresponding way to the way in which it would have applied if:


(c) the payment had been to you; and


(d) if the payment is made after your death - you were still alive.


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