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Edited version of private advice
Authorisation Number: 1051777821161
Date of advice: 10 November 2020
Ruling
Subject: Undeducted purchase price of a foreign pension or annuity
Question
Are you entitled to an undeducted purchase price (UPP) deductible amount in respect of your foreign pension?
Answer
Yes. The deductible amount has been calculated in accordance with the formula under subsection 27H (2) of the Income Tax Assessment Act 1936
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 February 20XX
Relevant facts and circumstances
The taxpayer is a resident of Australia for income tax purposes.
The taxpayer's pension is paid by the XXX Compensation Office (SCO), a scheme maintained in Country A.
The taxpayer provided a letter from the XXX Compensation Office outlining the amount of your personal contributions
The taxpayers pension commenced on XX/month/20XX and is payable for life
The taxpayer currently receives 100% of the pension
The residual capital value of the pension is nil
When the pension commenced the taxpayer was 65 years of age and their life expectancy factor was 19.22
The taxpayers pension is paid on a monthly basis.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 27H
Income Tax Assessment Act 1936 Subsection 27H(2)
Income Tax Assessment Act 1936 Subsection 27H(4)
Income Tax Regulations 1936 Regulation 9