ATO Interpretative Decision
ATO ID 2001/2 (Withdrawn)
Superannuation: Undeducted Purchase Price (Italy)
FOI status: may be released
||This ATO ID is withdrawn from the database as it is superseded by Taxation Ruling IT 2554.
||This document has changed over time. View its history.
Status of this decision: Decision Withdrawn 4 July 2008
|CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.|
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Whether the taxpayer is entitled to a deductible amount under section 27H ( Income Tax Assessment Act 1936 (ITAA)) in relation to a pension paid from Italy by the Instituto Nazionale della Previdenza Sociale (INPS)
The taxpayer is entitled to a deductible amount under section 27H ( Income Tax Assessment Act 1936 (ITAA)) in relation to a pension paid from Italy by the Instituto Nazionale della Previdenza Sociale (INPS)
The taxpayer receives two pensions from the INPS. One pension is a reversionary pension which commenced after 1 July 1983 paid on the death of the taxpayer's spouse. The other pension is paid to the taxpayer on the taxpayer's retirement. The taxpayer provided evidence from INPS of the purchase price component of both pensions.
Reasons For Decision
The taxpayer is entitled to a deductible amount on both pensions. The amount of any annuity, including a superannuation pension, derived by the taxpayer during a year of income is included in the assessable income of the taxpayer. The taxpayer is then entitled to have part of the pension (a portion of the undeducted purchase price) excluded from their assessable income for each year in which the pension is paid (section 27H (ITAA 1936)).
The undeducted purchase price is calculated in accordance with the guidelines published in Taxation Ruling IT 2554.
Date of decision: 14 July 1998
Income Tax Assessment Act 1936
Related Public Rulings (including Determinations)
Foreign pension income
Undeducted purchase price
Business Line: Superannuation
Date of publication: 4 June 2001