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Edited version of private advice
Authorisation Number: 1052149709684
Date of advice: 15 August 2023
Ruling
Subject: Foreign income - gift
Question
Does the money gifted to you by your parents form part of your assessable income under section 6-5 of the Income Tax Assessment Act 1997?
Answer
No. The funds gifted to you by your parents do not have the features of ordinary income therefore are not considered assessable income.
This private ruling applies for the following period:
Year ending XX June 20XX
Year ending XX June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
You are a resident of Country A for tax purposes.
Your parents live in Country B.
Your parents have expressed a desire to distribute funds to you.
The funds are a gift from your parents from their own joint finances.
The funds are not a source of income.
You do not work for your parents.
You parents have both supplied signed statutory declarations declaring their intention to gift an amount of X.
Your parents have also suppled a letter stating their reasons and intentions behind the gifted funds.
Your parents will transfer the funds to a bank account in your name in Country B in multiple transactions, each labelled 'gift'.
You will then transfer these funds in multiple transactions to a bank account in Country A in your name, each labelled 'gift'.
The funds that relate to this ruling will be transferred sometime during the financial year ending X June 20XX.
You and your parents are willing to provide accurate and genuine records of all transactions relating to these funds.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5