ATO Interpretative Decision
ATO ID 2001/2 (Withdrawn)
Superannuation
Superannuation: Undeducted Purchase Price (Italy)FOI status: may be released
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This ATO ID is withdrawn from the database as it is superseded by Taxation Ruling IT 2554.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Whether the taxpayer is entitled to a deductible amount under section 27H (Income Tax Assessment Act 1936 (ITAA)) in relation to a pension paid from Italy by the Instituto Nazionale della Previdenza Sociale (INPS)
Decision
The taxpayer is entitled to a deductible amount under section 27H (Income Tax Assessment Act 1936 (ITAA)) in relation to a pension paid from Italy by the Instituto Nazionale della Previdenza Sociale (INPS)
Facts
The taxpayer receives two pensions from the INPS. One pension is a reversionary pension which commenced after 1 July 1983 paid on the death of the taxpayer's spouse. The other pension is paid to the taxpayer on the taxpayer's retirement. The taxpayer provided evidence from INPS of the purchase price component of both pensions.
Reasons For Decision
The taxpayer is entitled to a deductible amount on both pensions. The amount of any annuity, including a superannuation pension, derived by the taxpayer during a year of income is included in the assessable income of the taxpayer. The taxpayer is then entitled to have part of the pension (a portion of the undeducted purchase price) excluded from their assessable income for each year in which the pension is paid (section 27H (ITAA 1936)). The undeducted purchase price is calculated in accordance with the guidelines published in Taxation Ruling IT 2554.
Date of decision: 14 July 1998
Legislative References:
Income Tax Assessment Act 1936
section 27H
Related Public Rulings (including Determinations)
IT 2554
Keywords
Foreign pension income
Undeducted purchase price
ISSN: 1445-2782
| Date: | Version: | |
| 14 July 1998 | Original statement | |
| You are here | 4 July 2008 | Archived |