Private ruling: Undeducted purchase price of a foreign pension or annuity
Date of advice: 10 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 February 20XX

Ruling: Q1: Are you entitled to an undeducted purchase price (UPP) deductible amount in respect of your foreign pension? | A1: Yes. The deductible amount has been calculated in accordance with the formula under subsection 27H (2) of the Income Tax Assessment Act 1936

Relevant facts and circumstances: The taxpayer is a resident of Australia for income tax purposes. The taxpayer's pension is paid by the XXX Compensation Office (SCO), a scheme maintained in Country A. The taxpayer provided a letter from the XXX Compensation Office outlining the amount of your personal contributions The taxpayers pension commenced on XX/month/20XX and is payable for life The taxpayer currently receives 100% of the pension The residual capital value of the pension is nil When the pension commenced the taxpayer was 65 years of age and their life expectancy factor was 19.22 The taxpayers pension is paid on a monthly basis.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 27H | Income Tax Assessment Act 1936 Subsection 27H(2) | Income Tax Assessment Act 1936 Subsection 27H(4) | Income Tax Regulations 1936 Regulation 9