Private ruling: lump sum payment from foreign superannuation fund
Published: January 2012
Ruling period: 1 July 2010 to 30 June 2011 | 1 July 2011 to 30 June 2012
Date scheme commenced: 1 July 2010

Ruling: Q1: 1. Is any part of the lump sum payments from the overseas retirement annuities included in assessable income as applicable fund earnings? 2. Are you entitled to claim a foreign income tax offset (FITO) in respect of the lump sum payments? Advice/Answers: 1. Yes. 2. Yes

Relevant facts and circumstances: 1. You are under age 60. 2. You migrated to Australia from an overseas country and became a resident for tax purposes on July 2001 (residency date). 3. While in the overseas country you joined five schemes which paid retirement annuity policies (overseas retirement policies) at age 55. 4. In July 2008 the rules of overseas country were revised allowing access to funds in retirement annuity policies before age 55 if a person had formally emigrated from that particular overseas country. 5. The lump sum payments for the overseas retirement policies (after tax was deducted in the overseas country) have been remitted to Australia. 6. The amounts paid (before overseas tax was deducted) in respect of the five overseas retirement policies in the currency of the overseas country have been provided including the value as at April 2000. 7. As per the telephone conversation with your tax agent in December 2011, you have agreed to the values of your overseas retirement policies as at the day before your residency date in July 2001.

Relevant legislative provisions: Income Tax Assessment Act 1997. Section 2-35. | Income Tax Assessment Act 1997. Section 2-45. | Income Tax Assessment Act 1997 Subsection 295-95(2). | Income Tax Assessment Act 1997 Section 305-55. | Income Tax Assessment Act 1997 Section 305-70. | Income Tax Assessment Act 1997 Section 305-75. | Income Tax Assessment Act 1997 Subsection 305-75(2). | Income Tax Assessment Act 1997 Subsection 305-75(3). | Income Tax Assessment Act 1997 Paragraph 305-75(3)(a). | Income Tax Assessment Act 1997 Paragraph 305-75(3)(b). | Income Tax Assessment Act 1997 Paragraph 305-75(3)(c). | Income Tax Assessment Act 1997 Paragraph 305-75(3)(d). | Income Tax Assessment Act 1997 Subsection 305-75(5). | Income Tax Assessment Act 1997 Subsection 305-75(6). | Income Tax Assessment Act 1997 Section 307-65. | Income Tax Assessment Act 1997 Subsection 295-95(2). | Income Tax Assessment Act 1997 .Section 770-5(1). | Income Tax Assessment Act 1997 .Subsection 770-10(1). | Income Tax Assessment Act 1997 Subsection 960-50. | Income Tax Assessment Act 1997 Subsection 995-1(1). | Superannuation Industry (Supervision) Act 1993 Section 10. | Superannuation Industry (Supervision) Act 1993 Section 62.

Reasons for decision: Summary: A portion of the lump sum payments in respect of your overseas retirement policies is assessable as 'applicable fund earnings' in Australia. For the 2010-11 income year your applicable fund earnings are a total of Australian Dollars (AUD) $X. This is the sum of the applicable fund earnings of $A for Policy 1 + $ 0 for Policy 3 + $ 0 for Policy 4 + $B for Policy 5. For the 2011-12 income year, your applicable fund earnings is AUD $Y being the amount of applicable fund earnings in respect of Policy 2. Foreign income tax offset for foreign tax paid is available for Policy 1 and Policy 2. | Detailed Reasoning - Lump sum payments from foreign superannuation funds: The applicable fund earnings in relation to a lump sum payment from a foreign superannuation fund that is received more than six months after a person has become an Australian resident will be assessable under section 305-70 of the Income Tax Assessment Act 1997 (ITAA 1997). The applicable fund earnings are subject to tax at the person's marginal rate. The remainder of the lump sum payment is not assessable income and is not exempt income. The applicable fund earnings is the amount worked out under either subsection 305-75(2) or (3) of the ITAA 1997. Subsection 305-75(2) applies where the person was an Australian resident at all times during the period to which the lump sum relates. Subsection 305-75(3) of the ITAA 1997 applies where the person becomes an Australian resident after the start of the period to which the lump sum relates. Before determining whether an amount is assessable under section 305-70 of the ITAA 1997, it is necessary to ascertain whether the payment is being made from a foreign superannuation fund. If the entity making the payment is not a foreign superannuation fund then section 305-70 of the ITAA 1997 will not have any application. | Detailed Reasoning - Foreign superannuation fund: (a) a superannuation fund is a foreign superannuation fund at a time if the fund is not an Australian superannuation fund at that time; and (b) a superannuation fund is a foreign superannuation fund for an income year if the fund is not an Australian superannuation fund for the income year. Subsection 295-95(2) of the ITAA 1997 defines Australian superannuation fund as follows: A superannuation fund is an Australian superannuation fund at a time, and for the income year in which that time occurs, if: (a) the fund was established in Australia, or any asset of the fund is situated in Australia at that time; and (b) at that time, the central management and control of the fund is ordinarily in Australia; and (c) at that time either the fund had no member covered by subsection (3) (an active member ) or at least 50% of: (i) the total *market value of the fund's assets attributable to *superannuation interests held by active members; or (ii) the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members; is attributable to superannuation interests held by active members who are Australian residents. Thus, a superannuation fund that is established outside of Australia and has its central management and control outside of Australia would qualify as a foreign superannuation fund . The fact that some of its members may be Australian residents would not necessarily alter this. Subsection 995-1(1) of the ITAA 1997 defines a superannuation fund as having the same meaning given by section 10 of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that is: (a) a fund that: (i) is an indefinitely continuing fund; and (ii) is a provident, benefit, superannuation or retirement fund; or (b) a public sector superannuation scheme; | Detailed Reasoning - Provident, benefit, superannuation or retirement fund: The High Court examined both the terms superannuation fund and fund in Scott v Commissioner of Taxation of the Commonwealth (No. 2) (1966) 10 AITR 290; (1966) 40 ALJR 265; (1966) 14 ATD 333 (Scott). In that case, Justice Windeyer stated: …I have come to the conclusion that there is no essential single attribute of a superannuation fund established for the benefit of employees except that it must be a fund bona fide devoted as its sole purpose to providing for employees who are participants money benefits (or benefits having a monetary value) upon their reaching a prescribed age. In this connexion "fund", I take it, ordinarily means money (or investments) set aside and invested, the surplus income therefrom being capitalised. I do not put this forward as a definition, but rather as a general description. The issue of what constitutes a provident, benefit, superannuation or retirement fund was discussed by the Full Bench of the High Court in Mahony v Commissioner of Taxation (Cth) (1967) 41 ALJR 232; (1967) 14 ATD 519 ( Mahony ). In that case, Justice Kitto held that a fund had to exclusively be a 'provident, benefit or superannuation fund' and that 'connoted a purpose narrower than the purpose of conferring benefits in a completely general sense…". This narrower purpose meant that the benefits had to be 'characterised by some specific future purpose' such as the example given by Justice Kitto of a funeral benefit. Furthermore, Justice Kitto's judgement indicated that a fund does not satisfy any of the three provisions, that is, 'provident, benefit or superannuation fund', if there exist provisions for the payment of benefits 'for any other reason whatsoever'. In other words, though a fund may contain provisions for retirement purposes, it could not be accepted as a superannuation fund if it contained provisions that benefits could be paid in circumstances other than those relating to retirement. In section 62 of the SIS Act, a regulated superannuation fund must be 'maintained solely' for the 'core purposes' of providing benefits to a member when the events occur: · on or after retirement from gainful employment; or · attaining a prescribed age; and · on the member's death. (this may require the benefits being passed on to a member's dependants or legal representative). Notwithstanding the SIS Act applies only to 'regulated superannuation funds' (as defined in section 19 of the SIS Act), and foreign superannuation funds do not qualify as regulated superannuation funds as they are established and operate outside Australia, the Commissioner views the SIS Act (and the SIS Regulations) as providing guidance as to what 'benefit' or 'specific future purpose' a superannuation fund should provide. In view of the legislation and the decisions made in Scott and Mahony , the Commissioner's view is that for a fund to be classified as a superannuation fund, it must exclusively provide a narrow range of benefits that are characterised by some specific future purpose. That is, the payment of superannuation benefits upon retirement, invalidity or death of the individual or as specified under the SIS Act. Therefore, in order for each of the lump sum payments from the overseas retirement policies to be considered a payment from a foreign superannuation fund as defined in subsection 995-1(1) of the ITAA 1997, it must also satisfy the requirements set out in subsection 295-95(2) of the ITAA 1997. This means that it should not be an Australian superannuation fund as defined in that subsection but must be a provident, benefit, superannuation or retirement fund as discussed above. It is evident from the information provided that the lump sum payments received are in respect of retirement/annuity policies issued by the overseas retirement funds that are established outside of Australia. The documentation also supports that the terms and conditions of the policies are for retirement purposes and generally require that benefits may only become payable on retirement, death or permanent incapacity. Therefore, on the basis of the information provided, the Commissioner considers each of the lump sum payments received is from a foreign superannuation fund as defined in subsection 995-1(1) of the ITAA 1997. | Detailed Reasoning - Applicable fund earnings: You became a resident of Australia for tax purposes in July 2001 and you received the lump sum payments on various dates after you became a resident. As the various dates were all more than 6 months after you became an Australian resident, section 305-70 of the ITAA 1997 applies to include the 'applicable fund earnings' (if any) in your assessable income. The 'applicable fund earnings' are worked out under section 305-75. As mentioned earlier, subsection 305-75(3) applies where the person becomes an Australian resident after the start of the period to which the lump sum relates. Subsection 305-75(3) of the ITAA 1997 states: If you become an Australian resident after the start of the period to which the lump sum relates, the amount of your applicable fund earnings is the amount (not less than zero) worked out as follows: (a) work out the total of the following amounts: (i) The amount in the fund that was vested in you just before the day (the start day ) you first became an Australian resident during the period; (ii) the part of the payment that is attributable to contributions to the fund made by or in respect of you during the remainder of the period; (iii) the part of the payment (if any) that is attributable to amounts transferred into the fund from any other *foreign superannuation fund during the period; (b) subtract that total amount from the amount in the fund that was vested in you when the lump sum was paid (before any deduction for *foreign tax); (c) multiply the resulting amount by the proportion of the total days during the period when you were an Australian resident; (d) add the total of all previously exempt fund earnings (if any) covered by subsections (5) and (6). In short, you are assessed only on the income earned (the accretion) in respect of each of the overseas retirement policies less any contributions you made since you became a resident of Australia. Further, any amounts representative of earnings during periods of non-residency, and transfers into the paying fund do not form part of the taxable amount when the overseas benefit is paid. | Detailed Reasoning - Foreign currency conversion: Subsection 960-50(1) of the ITAA 1997 states that an amount in a foreign currency is to be translated into Australian dollars. The applicable fund earnings is the result of a calculation from two other amounts and subsection 960-50(4) states when applying section 960-50 to amounts that are elements in the calculation of another amount you need to: (a) first, translate any amounts that are elements in the calculation of other amounts (except special accrual amounts); and (b) then, calculate the other amounts | Detailed Reasoning - Policy number 1: You have agreed to a value as the amount of your benefit on the day before you became a resident of Australia This is converted into Australian dollars (AUD) at the exchange rate that applied for that day which converts the amount to AUD 1 (cents ignored). Statements from the fund indicate no contributions were made to the policy by yourself or an employer after your residency date. No amounts were transferred into the fund from other foreign superannuation funds during the period. In March 2011, this policy was paid out to you in the form of a lump sum. Therefore this is the amount vested in you when the lump sum was paid. This is converted into AUD at the exchange rate that applied on that day which converts the amount to AUD 2 (cents ignored). In accordance with the Commissioner's view 'the period' for the purposes of paragraph 305-75(3)(c) of the ITAA 1997 commences on the day on which the person first became an Australian resident and ceases on the day the lump sum is paid. In your case, that period is from July 2001 to March 2011 and you were a resident for the whole of that period. Therefore the Australian resident days and the total days are the same, and so the proportion to be used in the calculation is 1. There are no previously exempt fund earnings in relation to the lump sum. Therefore, applying subsection 305-75(3) to your circumstances, the amounts to be used in calculating the applicable fund earnings are as follows: 305-75(3)(a)(i) AUD 1 305-75(3)(a)(ii) Nil 305-75(3)(a)(iii) Nil 305-75(3)(b) AUD 2 305-75(3)(c) 1 305-75(3)(d) Nil | Detailed Reasoning - Calculation of the assessable amount of the payment from foreign superannuation fund: In accordance with 305-75 (3) of the ITAA 1997 the amounts determined at sub-paragraphs 305-75(3)(a)(i), (ii) and (iii) are added. AUD 1 + nil + nil = AUD 1 . This total is then subtracted from the amount determined under paragraph 305-75(3)(b), AUD 2 . AUD 2 less AUD 1 is $A This figure is multiplied by the proportion of the total days determined under paragraph 305-75(3)(c) - '1' $A x 1 = $A To this figure we add the amounts determined under paragraph 305-75(3)(d) - nil $A + nil = $A The amount $A will be included as assessable 'applicable fund earnings' in the 2010-11 income year. | Detailed Reasoning - Policy number 2: You have agreed to a value as the amount of your benefit on the day before you became a resident of Australia. This is converted into Australian dollars (AUD) at the exchange rate that applied for that day which converts the amount to AUD 3(cents ignored). Statements from the fund indicate no contributions were made to the policy by yourself or an employer after July 2001. No amounts were transferred into the fund from other foreign superannuation funds during the period. In July 2011, this policy was paid out to you in the form of a lump sum. Therefore this is the amount vested in you when the lump sum was paid. This is converted into AUD at the exchange rate that applied on that day. As that day was a Sunday, the rate on the next business day converts the amount to AUD 4 (cents ignored). In accordance with the Commissioner's view 'the period' for the purposes of paragraph 305-75(3)(c) of the ITAA 1997 commences on the day on which the person first became an Australian resident and ceases on the day the lump sum is paid. In your case, that period is from July 2001 to July 2011 and you were a resident for the whole of that period. Therefore the Australian resident days and the total days are the same, and so the proportion to be used in the calculation is 1. There are no previously exempt fund earnings in relation to the lump sum. Therefore, applying subsection 305-75(3) to your circumstances, the amounts to be used in calculating the applicable fund earnings are as follows: 305-75(3)(a)(i) AUD 3 305-75(3)(a)(ii) Nil 305-75(3)(a)(iii) Nil 305-75(3)(b) AUD 4 305-75(3)(c) 1 305-75(3)(d) Nil | Detailed Reasoning - Calculation of the assessable amount of the payment from foreign superannuation fund: In accordance with 305-75 (3) of the ITAA 1997 the amounts determined at sub-paragraphs 305-75(3)(a)(i), (ii) and (iii) are added. AUD 3 + nil + nil = AUD 3 . This total is then subtracted from the amount determined under paragraph 305-75(3)(b), AUD 4 . AUD 4 less AUD 3 is $Y This figure is multiplied by the proportion of the total days determined under paragraph 305-75(3)(c) - '1' $Y x 1 = $Y To this figure we add the amounts determined under paragraph 305-75(3)(d) - nil $Y + nil = $Y The amount $Y will be included as assessable 'applicable fund earnings' in the 2011-12 income year. | Detailed Reasoning - Policy number 3: You have agreed to a value as the amount of your benefit on the day before you became a resident of Australia (July 2001). This is converted into Australian dollars at the exchange rate that applied for that day which converts the amount to AUD 5 (cents ignored). Statements from the fund indicate no contributions were made to the policy by yourself or an employer after July 2001. No amounts were transferred into the fund from other foreign superannuation funds during the period. In November 2010, this policy was paid out to you in the form of a lump sum. Therefore this is the amount vested in you when the lump sum was paid. This is converted into AUD at the exchange rate that applied on that day which converts the amount to AUD 6 (cents ignored). In accordance with the Commissioner's view 'the period' for the purposes of paragraph 305-75(3)(c) of the ITAA 1997 commences on the day on which the person first became an Australian resident and ceases on the day the lump sum is paid. In your case, that period is from July 2001 to November 2010 and you were a resident for the whole of that period. Therefore the Australian resident days and the total days are the same, and so the proportion to be used in the calculation is 1. There are no previously exempt fund earnings in relation to the lump sum. Therefore, applying subsection 305-75(3) to your circumstances, the amounts to be used in calculating the applicable fund earnings are as follows: 305-75(3)(a)(i) AUD 5 305-75(3)(a)(ii) Nil 305-75(3)(a)(iii) Nil 305-75(3)(b) AUD 6 305-75(3)(c) 1 305-75(3)(d) Nil | Detailed Reasoning - Calculation of the assessable amount of the payment from foreign superannuation fund: In accordance with 305-75 (3) of the ITAA 1997 the amounts determined at sub-paragraphs 305-75(3)(a)(i), (ii) and (iii) are added. AUD 5 + nil + nil = AUD 5. This total is then subtracted from the amount determined under paragraph 305-75(3)(b), AUD 6 . AUD 6 less AUD 5 = Negative amount This figure is multiplied by the proportion of the total days determined under paragraph 305-75(3)(c) - '1' Negative amount x 1 = Negative amount To this figure we add the amounts determined under paragraph 305-75(3)(d) - nil Negative amount + nil = Negative amount As this amount is less than zero, no amount will be included as assessable 'applicable fund earnings' in the 2010-11 income year. | Detailed Reasoning - Policy number 4: You have agreed to a value as the amount of your benefit on the day before you became a resident of Australia (July 2001). This is converted into Australian dollars at the exchange rate that applied for that day which converts the amount to AUD 7 (cents ignored). Statements from the fund indicate no contributions were made to the policy by yourself or an employer after July 2001. No amounts were transferred into the fund from other foreign superannuation funds during the period. In December 2010, this policy was paid out to you in the form of a lump sum. Therefore this is the amount vested in you when the lump sum was paid. This is converted into AUD at the exchange rate that applied on that day which converts the to AUD 8 (cents ignored). In accordance with the Commissioner's view 'the period' for the purposes of paragraph 305-75(3)(c) of the ITAA 1997 commences on the day on which the person first became an Australian resident and ceases on the day the lump sum is paid. In your case, that period is from July 2001 to December 2010 and you were a resident for the whole of that period. Therefore the Australian resident days and the total days are the same, and so the proportion to be used in the calculation is 1. There are no previously exempt fund earnings in relation to the lump sum. Therefore, applying subsection 305-75(3) to your circumstances, the amounts to be used in calculating the applicable fund earnings are as follows: 305-75(3)(a)(i) AUD 7 305-75(3)(a)(ii) Nil 305-75(3)(a)(iii) Nil 305-75(3)(b) AUD 8 305-75(3)(c) 1 305-75(3)(d) Nil | Detailed Reasoning - Calculation of the assessable amount of the payment from foreign superannuation fund: In accordance with 305-75 (3) of the ITAA 1997 the amounts determined at sub-paragraphs 305-75(3)(a)(i), (ii) and (iii) are added. AUD 7 + nil + nil = AUD 7. This total is then subtracted from the amount determined under paragraph 305-75(3)(b), AUD 8 . AUD 8 less AUD 7 = Negative amount This figure is multiplied by the proportion of the total days determined under paragraph 305-75(3)(c) - '1' Negative amount x 1 = Negative amount To this figure we add the amounts determined under paragraph 305-75(3)(d) - nil Negative amount + nil = Negative amount As the amount is less than zero, no amount will be included as assessable 'applicable fund earnings' in the 2010-11 income year. | Detailed Reasoning - Policy number 5: You have agreed to a value as the amount of your benefit on the day before you became a resident of Australia (July 2001). This is converted into Australian dollars at the exchange rate that applied for that day which converts the amount to AUD 9 (cents ignored). Statements from the fund indicate no contributions were made to the policy by yourself or an employer after July 2001. No amounts were transferred into the fund from other foreign superannuation funds during the period. In January 2011, this policy was paid out to you in the form of a lump sum. Therefore this is the amount vested in you when the lump sum was paid. This is converted into Australian dollars at the exchange rate that applied on that day which converts the amount to AUD 10 (cents ignored). In accordance with the Commissioner's view 'the period' for the purposes of paragraph 305-75(3)(c) of the ITAA 1997 commences on the day on which the person first became an Australian resident and ceases on the day the lump sum is paid. In your case, that period is from July 2001 to January 2011 and you were a resident for the whole of that period. Therefore the Australian resident days and the total days are the same, and so the proportion to be used in the calculation is 1. There are no previously exempt fund earnings in relation to the lump sum. Therefore, applying subsection 305-75(3) to your circumstances, the amounts to be used in calculating the applicable fund earnings are as follows: 305-75(3)(a)(i) AUD 9 305-75(3)(a)(ii) Nil 305-75(3)(a)(iii) Nil 305-75(3)(b) AUD 10 305-75(3)(c) 1 305-75(3)(d) Nil | Detailed Reasoning - Calculation of the assessable amount of the payment from foreign superannuation fund: In accordance with 305-75 (3) of the ITAA 1997 the amounts determined at sub-paragraphs 305-75(3)(a)(i), (ii) and (iii) are added. AUD 9 + nil + nil = AUD 9 . This total is then subtracted from the amount determined under paragraph 305-75(3)(b), AUD 10. AUD 10 less AUD 9 is $B This figure is multiplied by the proportion of the total days determined under paragraph 305-75(3)(c) - '1' $B x 1 = $B To this figure we add the amounts determined under paragraph 305-75(3)(d) - nil $B + nil = $B The amount $B will be included as assessable 'applicable fund earnings' in the 2010-11 income year. Subsection 770-10(1) of the ITAA 1997 provides the basic entitlement rule for a FITO and states: You are entitled to a tax offset for an income year for foreign income tax. An amount of foreign income tax counts towards the tax offset for the year if you paid it in respect of an amount that is all or part of an amount included in your assessable income for the year. | Detailed Reasoning - Entitlement to claim a foreign income tax offset (FITO) in respect of the lump sum payments: Subsection 770-10(1) of the ITAA 1997 uses the phrase 'in respect of' to link the foreign income tax with an amount included in the taxpayer's assessable income. The phrase 'in respect of' was considered in the case Workers' Compensation Board of Queensland v. Technical Products Pty Ltd 165 CLR 642; 81 ALR 260. In a joint judgement Deane, Dawson and Toohey JJ said the following about this phrase: The phrase gathers meaning from the context in which it appears and it is that context which will determine the matters to which it extends. Subsection 770-5(1) of the ITAA 1997 provides relevant context by explaining the object of Division 770 as follows: The object of this Division is to relieve double taxation where: (a) you have paid foreign tax on amounts included in your assessable income; and (b) you would, apart from this Division, pay Australian tax on the same amounts. The references in the objects provision to relieving 'double taxation' and 'amounts included in your assessable income' demonstrate that, where a taxpayer pays foreign tax on the whole of a lump sum but only a portion of that lump sum is assessable in Australia, the purpose of Division 770 is to only provide a foreign income tax offset for the portion of the gain that is included in assessable income and thus subject to taxation in both Australia and the foreign country (that is, double taxation). This can be described as an 'apportionment approach' to the allowance of a foreign income tax offset. Such an approach is also consistent with the approach explained in Note 2 to subsection 770-10(1) of the ITAA 1997 which states: If the foreign income tax has been paid on an amount that is part non-assessable non-exempt income and part assessable income for you for the income year, only a proportionate share of the foreign income tax (the share that corresponds to the part that is assessable income) will count towards the tax offset (excluding the operation of subsection (2)). While Note 2 is non-operative material, it is relevant context as it is provided to help understand provisions (see sections 2-35 and 2-45 of the ITAA 1997). Accordingly, Note 2 is further contextual support for the view that the words used in subsection 770-10(1) of the ITAA 1997 were intended to require apportionment of the foreign income tax paid when only part of an amount that is subject to foreign income tax is included in Australian assessable income. The foreign income tax offset provisions in the ITAA 1997 were introduced by the Tax Laws Amendment (2007 Measures No. 4) Bill 2007. Paragraph 1.18 of the Explanatory Memorandum accompanying the Bill summarises the new law, in part, as follows: Taxpayers will be entitled to a non-refundable tax offset for foreign income tax paid on an amount included in assessable income (a 'double-taxed amount'). This offset effectively reduces the potential Australian tax that would be payable on double-taxed amounts. This statement also confirms that a foreign income tax offset will only be allowed on an amount that is included in assessable income in Australia and subject to double taxation. The Explanatory Memorandum also makes many other references to a foreign income tax offset being limited to amounts included in assessable income and subject to double taxation. Foreign tax has only been paid for Policies 1 and 2. Credit for foreign tax paid can only be allowed for these two policies. The portion of foreign tax available for credit for each policy will be calculated as follows: Foreign tax paid X amount of lump sum included in Australian assessable income amount of lump sum | Detailed Reasoning - Note: Further information regarding calculating a FITO can be obtained from the booklet Guide to foreign income tax offset rules 2010-11 (NAT 72923) which can be obtained from the ATO website www.ato.gov.au

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