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Edited version of private advice
Authorisation Number: 1051927001886
Date of advice: 30 November 2021
Ruling
Subject: Payments received
Question
Are you liable for tax on the payments?
Answer
No.
In your case the other entity is treated as having constructively received the funds before they were paid to you. Consequently, the income tax consequences, if any, in relation to the payments lie with the other entity.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Another entity had the right to receive payments but agreed that amounts paid to you would be in satisfaction of their right.
Amounts were paid to you in satisfaction of the other entity's right to receive payments.
Relevant legislative provisions
Income Tax Assessment Act 1997 - section 20-20
Income Tax Assessment Act 1997 - section 6-5