| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012758047891
Ruling
Subject: foreign pension funds and exemption from withholding tax
Questions and answers
1. Is the trustee of the Master Trust Fund and its participating funds excluded from liability to withholding tax on its interest and/or dividend income derived from Australia under paragraph 128B(3)(jb) of the ITAA 1936?
Yes.
2. Is interest and/or dividend income derived by the trustee of the Master Trust Fund and its participating funds non-assessable income of the fund under section 128D of the ITAA 1936?
Yes.
This ruling applies for the following periods:
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
The scheme commenced on:
1 July 2013
Relevant legislative provisions:
Income Tax Assessment Act 1936 Paragraph 128B(3)(jb).
Income Tax Assessment Act 1936 Section 128D.
Income Tax Assessment Act 1997 Section 118-520.
Relevant facts and circumstances
The applicant has applied for a private ruling for the superannuation fund for foreign residents.
The application includes the following documentation:
Relating to the Master Trust
• Statement from the trustee of the Master Trust confirming that the fund is an indefinitely continuing fund and a provident, benefit, superannuation or retirement fund, was established in a foreign country, was established and is maintained only to provide benefits for individuals who are not Australian residents, the central management and control of the fund is carried on outside Australia by entities none of whom is an Australian resident, an amount paid to the fund or set aside for the fund has not been or cannot be deducted under the Income Tax Assessment Act 1997 (ITAA 1997) and a tax offset has not been allowed or is not allowable for such an amount.
• Letter from the overseas authorities, certifying that the Master Trust is a registered pension fund and is exempt from tax in respect of interest and dividend income in that country.
• A link to the most recent financial reports for the Master Trust.
• A declaration from the trustee that the Master Trust is a superannuation fund for non-residents.
• A copy of the trust deed which provides details of rules and benefits available to the members.
Relating to the participating funds
• Copies of statements from trustees of the participating funds confirming that the participating funds are indefinitely continuing funds and are provident, benefit, superannuation or retirement funds, were established in a foreign country, were established and maintained only to provide benefits for individuals who are not Australian residents, the central management and control of the funds are carried on outside Australia by entities none of whom is an Australian resident, an amount paid to the funds or set aside for the funds has not been or cannot be deducted under the Income Tax Assessment Act 1997 (ITAA 1997) and a tax offset has not been allowed or is not allowable for such an amount.
• Letters from the overseas authorities, certifying that each of the participating funds is exempt from tax in respect of interest and dividend income from that country.
• A declaration provided by the trustee of each of the participating pension fund confirming that each fund is a superannuation fund for non-residents.
• A link to the most recent financial reports for each participating fund.
• Recent publications issued to members in respect of each participating pension fund explaining the pension plan and the benefits available to members.