ATO Interpretative Decision

ATO ID 2001/533 (Withdrawn)

Income Tax

Assessability of UK pension
FOI status: may be released

This ATO ID is withdrawn as the applicable legislation has been repealed.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is a pension received by a resident taxpayer from the United Kingdom (UK) assessable under section 26AA of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

Yes, a pension received by a resident taxpayer from the UK is assessable under section 26AA of the ITAA 1936.

Facts

The taxpayer was a resident of the UK. The taxpayer retired from his employment and, prior to 1 July 1983, started to receive a monthly superannuation pension.

The taxpayer immigrated to Australia soon after retirement and became a resident of Australia for tax purposes.

Reasons for Decision

Article 14, Schedule 1 to the International Tax Agreements Act 1953 provides that any pension derived from sources within the UK by an individual who is a resident of Australia shall be exempt from tax in the UK.

Section 26AA of the ITAA 1936 includes in a taxpayer's assessable income the amount of any annuity received, excluding the part of the annuity that represents the undeducted purchase price. The application of this section is restricted to annuities that were first payable before 1 July 1983.

The taxpayer is a resident of Australia. As a resident, the pension is assessable income in Australia in accordance with section 26AA of the ITAA 1936. The amount of pension to be included in assessable income is the pension amount excluding the amount that represents the undeducted purchase price.

Date of decision: 24 August 2001

Year of income: Year ended 30 June 1997 Year ended 30 June 1998 Year ended 30 June 1999 Year ended 30 June 2000 Year ended 30 June 2001

Legislative References:
Income Tax Assessment Act 1936
section 26AA

International Tax Agreements Act 1953
Schedule 1 Article 14

Keywords
Foreign pension income
Double tax agreements

Business Line: Small Business/Individual Taxpayers

Date of publication: 26 October 2001

ISSN: 1445-2782

history

	Date:	Version:
	24 August 2001	Original statement
You are here	12 May 2006	Archived

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