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Edited version of your written advice
Authorisation Number: 1012854971321
Date of advice: 18 August 2015
Ruling
Subject: Undeducted Purchase Price (UPP) of your foreign pension
Question 1
Are you entitled to a deductible amount in respect of the UPP of your foreign pension?
Answer
Yes, your deductible amount has been calculated in accordance with subsection 27H(2) of the Income Tax Assessment Act 1936 (ITAA 1936).
This ruling applies for the following periods:
Year ended 30 June 2014
The scheme commences on:
On or after 1 July 1983
Relevant facts and circumstances
You receive a pension from a retirement fund established and managed outside Australia.
The international tax agreement between Australia and the country in which the retirement fund is established and managed provides that the pension is taxable in Australia.
Your assessable income includes your pension income.
All the pension is payable to you.
The pension became payable on or after 1 July 1983.
The pension is payable for life.
The total amount of contributions, other than employer contributions, paid to the retirement fund towards the purchase of the pension.
The residual capital value is nil.
Your pension is paid on a regular 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
Income Tax Assessment Act 1997 Section 960-50 - currency translation
Income Tax Assessment Regulations 1997 Regulation 960-50.01 - currency translation
ATO view documents:
Taxation Ruling IT 2498
Taxation Ruling IT 2498A - Addendum
Taxation Ruling TR 2002/17
Other references:
Taxation Determination TD 2006/17
Taxation Determination TD 2006/54