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Edited version of private advice
Authorisation Number: 1051769604256
Date of advice: 20 October 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 period:
Income year ended 30 June 2020.
The scheme commences on:
1 July 2019.
Relevant facts and circumstances
· The taxpayer is a resident of Australia for income tax purposes.
· The taxpayer's pension is paid by a pension scheme maintained in Switzerland.
· The taxpayer has provided a copy of a letter from their pension scheme outlining the amount of their personal contributions.
· The taxpayer commenced their pension on 1 July 2011 and is payable for life.
· The taxpayer currently receives 100% of the pension.
· The residual capital value of the taxpayer's pension is nil.
· The taxpayer was 64 years of age when they commenced the pension.
· The taxpayer's 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
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