ATO Interpretative Decision
ATO ID 2002/419 (Withdrawn)
Superannuation
Superannuation, retirement and termination of employment: Unused Undeducted Purchase Price (UUPP) at time pension commuted to a lump sumFOI status: may be released
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This ATO ID is withdrawn from the database as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 4 July 2008
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
What is the taxpayer's unused undeducted purchase price (UUPP) on commutation of their superannuation pension?
Decision
The UUPP on commutation of their superannuation pension is ascertained in accordance with the definition set out in subsection 27A(1) of the Income Tax Assessment Act 1936 (ITAA 1936)
Facts
The taxpayer received a pension from a superannuation fund.
The pension commenced after 1 July 1994.
The pension was not purchased using any ETP rolled-over amounts.
The taxpayer commuted their pension to a lump sum.
There was an amount of undeducted purchase price when the pension commenced.
There where amounts of undeducted purchase price claimed as deductible amounts against the pension income prior to its commutation.
Reasons for Decision
The taxpayer's superannuation pension is assessable to tax under section 27H of the Income Tax Assessment Act 1936 (ITAA 1936) as the term 'annuity' is defined in subsection 27H(4) to include a superannuation pension.
'Unused undeducted purchase price' (UUPP) and 'undeducted purchase price' (UPP) are defined in subsection 27A(1) of the ITAA 1936.
As the taxpayer's pension was not purchased using any Eligible Termination Payment (ETP) rolled-over amounts, the taxpayer's UUPP for the purpose of subsection 27A(1) is 'so much of the undeducted purchase price of the.......superannuation pension as has not been excluded from the assessable income of any taxpayer of any year of income......under section 27H.'
Accordingly, the UUPP is the UPP at the time the pension commenced less the amounts subsequently claimed as deductible amounts against the pension.
Date of decision: 21 June 2001
Legislative References:
Income Tax Assessment Act 1936
subsection 27A(1)
section 27H
Keywords
Undeducted purchase price
Unused undeducted purchase price
Superannuation pensions
Superannuation case reports
ISSN: 1445-2782
| Date: | Version: | |
| 21 June 2001 | Original statement | |
| You are here → | 4 July 2008 | Archived |