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Edited version of your written advice
Authorisation Number: 1012757450605
Ruling
Subject: Withholding tax exemption
Question 1
Is the Fund a 'trust' for Australian income tax purposes?
Answer
Yes
Question 2
Where the Fund is a 'trust' for Australian income tax purposes, would the participants in the Fund be deemed to derive any Australian sourced interest income included in the Fund's distributions (pursuant to subsection 128A(3) of the Income Tax Assessment Act 1936 (ITAA 1936))?
Answer
Yes
Question 3
Assuming that each participant in the Fund that is a foreign pension fund:
• is exempt from income tax in their country of residence; and
• satisfies the requirements to be a superannuation fund for foreign residents (as defined in section 118-520 of the Income Tax Assessment Act 1997 (ITAA 1997);
would any Australian sourced interest income included in the distributions from Fund to the foreign pension fund be exempt from interest withholding tax under paragraph 128A(3)(jb) of the ITAA 1936?
Answer
Yes
This ruling applies for the following periods:
1 July 201x to 30 June 201y
The scheme commences on:
1 July 201x
Relevant facts and circumstances
The taxpayer applied for a ruling on the application of paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 (ITAA 1936). The Fund is a pooled investment vehicle established in a civil law country in Europe.
Relevant legislative provisions
subsection 128A(3) of the ITAA 1936
paragraph 128B(3)(jb) of the ITAA 1936
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