ATO Interpretative Decision
ATO ID 2001/311 (Withdrawn)
Superannuation
Superannuation: Undeducted Purchase Price (Netherlands)FOI status: may be released
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This ATO ID is withdrawn from the database as it contains a non-intrepretative issue involving the exercise of the Commissioner's discretion.This document incorporates revisions made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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Can the taxpayer apply the 25% rate outlined in Taxation Determination TD 2000/46 to calculate the deductible amount for the Undeducted Purchase Price (UPP) of a pension paid by a Netherlands body other than the Sociale Verzekeringbank (SVB)?
Decision
No. The 25% method outlined in Taxation Determination TD 2000/46 cannot be used in respect of the particular pension that the taxpayer receives.
Facts
The taxpayer receives a pension from a body which is a part of a government department of the Netherlands. The pension is not paid by the SVB (the body that pays pensions under the Netherlands' social security system).
The taxpayer is not able to provide documentary evidence to establish the total of the personal contributions made towards the purchase of the pension.
Reasons for Decision
The deductible amount in respect of the UPP of an annuity or superannuation pension (including foreign pensions) is calculated in accordance with section 27H of the Income Tax Assessment Act 1936 (ITAA 1936).
A deductible amount equal to 25% of the gross pension, is available in respect of old age, widows, widowers and orphans pensions paid by the Netherlands' SVB to residents of Australia. This is set out in Taxation Determination TD 2000/46.
In this case, as the pension is paid by a body other than the SVB, Taxation Determination TD 2000/46 does not apply. No deductible amount can be claimed by the taxpayer in respect of the pension unless the taxpayer can obtain sufficient documentary evidence to enable calculation of the deductible amount in accordance with subsection 27H(2) of the ITAA 1936.
Date of decision: 31 July 2001
Legislative References:
Income Tax Assessment Act 1936
section 27H
subsection 27H(2)
Related Public Rulings (including Determinations)
TD 2000/46
ATO ID 2001/163
Keywords
Keywords
Foreign pension
Annuity & superannuation pension purchase price
Undeducted purchase price
ISSN: 1445-2782
| Date: | Version: | |
| 31 July 2001 | Original statement | |
| You are here | 4 July 2008 | Archived |