Private ruling: Foreign Distribution
Date of advice: 13 November 2019
Published: February 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Is the distribution of corpus assessable income? | A1: Yes. A distribution of corpus from a deceased estate is not assessable as ordinary or statutory income. In your case, the portion you will receive relating to the corpus of is neither ordinary income nor statutory income. Therefore, the distribution of corpus you receive from your father's estate will not be assessable.

Relevant facts and circumstances: You are an Australian resident for tax purposes. Your relative who was a non-resident passed away. Their will provided for the distribution of the trust property, including all undistributed income thereof. You were one of a number of beneficiaries of the estate. Their property was sold by the Executor for a specified amount with the balance to the Trust. A specified amount was deposited into an overseas interest bearing account and had accrued interest. An amount was distributed to all beneficiaries being a specified portion of the total interest and was included in their entitlement. You will receive a distribution, part of which is considered corpus of the trust.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Section 6-10 | Income Tax Assessment Act 1936 Section 99B