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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: 1052021081627

Date of advice: 12 August 2022

Ruling

Subject: Payment received

Question

Are you liable for tax on any part of the lump sum payment?

Answer

No.

In your case the other entity is treated as having constructively received the funds before they were paid to you and therefore is treated as having received the payment for tax purposes.

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 a lump sum payment, but that amount was paid to you in satisfaction of that right.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

Income Tax Assessment Act 1997 section 6-10