| Disclaimer 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: 1051801810072
Date of advice: 3 February 2021
Ruling
Subject: Undeducted purchase price of a foreign pension or annuity
Question
Are you entitled to an undeducted purchase price (UPP) deductible amount in respect of your foreign pension?
Answer
Yes.
This ruling applies for the following period:
Income year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The taxpayer is a resident of Australia for income tax purposes
The taxpayer's pension is paid by a pension scheme maintained in Country B.
The taxpayer has provided a letter from their pension scheme stating the amount of their personal contributions.
The taxpayer's pension commenced on 19 September 20XX and is payable for life.
The taxpayer currently receives 100% of the pension and on their death it reverts to their ex-spouse.
The residual capital value of the pension is nil.
The taxpayer was 58 years of age when they commenced their pension.
The taxpayer's ex-spouse was 41 years of age when the taxpayer commenced their pension.
The taxpayer's pension is paid on a monthly 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 Assessment Act 1997 Section 960-50 - currency translation
Income Tax Regulations 1936 Regulation 9
Income Tax Assessment Regulations 1997 Regulation 960-50.01 - currency translation