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Draft Taxation Determination

TD 93/D125

Income tax: does employment, for the purposes of subsection 27A(1), include time spent as a partner for the purpose of calculation of the eligible service period in relation to an eligible termination payment made in consequence of the termination of a person's employment?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/192.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. It only refers to service as an employee.

Example

Mr X joined an accounting firm, AB Partners as an employee on 1 January 1968. He became a partner in the firm on 1 January 1972. In 1 January 1980 AB Partners incorporated as a service company, and set up a superannuation fund. X became an employee of the service company and joined the superannuation fund. He retired on 31 December 1990 and received an eligible termination payment from the superannuation fund. His eligible service period commences on 1 January 1980 being the date on which he became an employee of the service company and joined the superannuation fund. His time as a partner does not form part of the eligible service period.

Commissioner of Taxation
27 May 1993

References


BO BANTD33

ISSN 1038-8982

Related Rulings/Determinations:

IT 2168, paragraph 4

Subject References:
eligible service period
eligible termination payment

Legislative References:
ITAA 27A(1)


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