| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051604047135
Date of advice: 13 November 2019
Ruling
Subject: Foreign Distribution
Question
Is the distribution of corpus assessable income?
Answer
Yes.
A distribution of corpus from a deceased estate is not assessable as ordinary or statutory income. In your case, the portion you will receive relating to the corpus of is neither ordinary income nor statutory income.
Therefore, the distribution of corpus you receive from your father's estate will not be assessable.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are an Australian resident for tax purposes.
Your relative who was a non-resident passed away.
Their will provided for the distribution of the trust property, including all undistributed income thereof. You were one of a number of beneficiaries of the estate.
Their property was sold by the Executor for a specified amount with the balance to the Trust. A specified amount was deposited into an overseas interest bearing account and had accrued interest. An amount was distributed to all beneficiaries being a specified portion of the total interest and was included in their entitlement.
You will receive a distribution, part of which is considered corpus of the trust.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10
Income Tax Assessment Act 1936 Section 99B