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Edited version of private advice
Authorisation Number: 1052045991280
Date of advice: 19 October 2022
Ruling
Subject: Receipt of voluntary payment
Question
Is the amount paid to you from your parent's overseas trust bank account assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. The amount received by you does not have the characteristics of being ordinary income. Therefore, it is not assessable income under section 6-5 of the ITAA 1997.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are an Australian resident for taxation purposes.
Your parent is a resident of Country X and has never been a resident of Australia.
Your parent is the sole trustee and beneficiary of a trust in Country X.
Your parent transferred a sum of USD $X from the Trust to your bank account during the financial year.
You received the sum of AUD $Y into your bank account from the overseas trust bank account on the same day.
The statement of investments provided shows that trust holds an asset portfolio comprising cash, bonds, and equities denominated in foreign currencies.
No services were performed by you to receive the payment.
You were not in an employment relationship with your parent or the trust.
You have not received any previous amounts from your parent or the trust.
The amount was not received by you as part of a loan arrangement.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5