Document ID: chunk:federal_register_of_legislation:C2014A00133:clause:2_2
Version: federal_register_of_legislation:C2014A00133
Segment Type: clause
Provision Reference: sch 2 cl 2
Character Range: 27845–29277

2  After subsection 840‑805(4)
Insert:

Modification—foreign pension funds
 (4A) For the purposes of subsections (2), (3) and (4), if:
 (a) the beneficiary, in respect of a fund payment part, is a beneficiary in the capacity of a trustee of another trust; and
 (b) the beneficiary is a *foreign pension fund;
the foreign pension fund is taken, in respect of that fund payment part, to be a beneficiary in its own right, and not a beneficiary in the capacity of the trustee of another trust.
 (4B) Foreign pension fund means:
 (a) an entity, the principal purpose of which is to fund pensions (including disability and similar benefits) for the citizens or other contributors of a foreign country, if:
 (i) the entity is a fund established by an *exempt foreign government agency; or
 (ii) the entity is established under a *foreign law for an exempt foreign government agency; or
 (b) a *foreign superannuation fund that has at least 50 *members.
 (4C) If:
 (a) a *foreign pension fund is liable to pay income tax on a fund payment part (a taxed part) because of the operation of subsection (4A); and
 (b) you are a beneficiary of the foreign pension fund and are presently entitled to a share of the income or capital of the foreign pension fund;
then, in working out for the purposes of paragraph (4)(b) whether all or part of that share is reasonably attributable to a payment that is a *fund payment, disregard the taxed part.