1 Will an interest charge under section 102AAM of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the taxable component under section 99B(1) of the ITAA 1936 of accumulated earnings of the Fund , since the inception of the Fund, if a withdrawal of Fund amounts was made in the future?
1 Yes Question 2 Will an interest charge under section 102AAM of the ITAA 1936 apply to the amount wholly reduced under subsection 99B(2)(a) of the ITAA 1936 being the non-taxable component of your Fund, since the inception of the Fund, if a withdrawal is made in the future? Answer 2 No. Question 3 Does the ' profit ' element, within subsection 102AAM(7) of the ITAA 1936, crystalise in the year of distribution such that the interest charge in section 102AAM of the ITAA 1936, only applies to the 'profit' element in the year the distribution is made and in the context of the Fund being registered and administered in a listed country? Answer 3 Yes. This ruling applies for the following period : XX July 20XX to XX June 20XX The scheme commenced on: XX July 20XX
You became an Australian resident for tax purposes on XXXX. On XXXX your Fund commenced. The Fund is a non-resident 'foreign investment trust' for the purposes of Australian Taxation Laws and you are the beneficiary of the Fund. The Fund is administered by a foreign corporate body in a foreign country. You intend to start accessing the Fund based on the outcome of this ruling as you are nearing retirement age. You intend to receive 'Accumulated Earnings' derived since the inception of the Fund, and 'Corpus' from the Fund consisting only of funds you or an employer have contributed. You only have one investment type in the Fund described as a shareholding in one large managed pool of Fund assets. The Fund does not directly hold actual individual listed shares or individual units in listed investment trusts but rather a small shareholding of a very large pool of listed investments. The Fund has a total market capitalisation of XXXX, of which your holdings are, a small amount of the total fund value.
Income Tax Assessment Act 1936 section 99B Income Tax Assessment Act 1936 subsection 99B(1) Income Tax Assessment Act 1936 subsection 99B(2) Income Tax Assessment Act 1936 section 102AAM Income Tax Assessment Act 1936 subsection 102AAM(1) Income Tax Assessment Act 1936 subsection 102AAM(7) Taxation Administration Act 1953 section 8AAD Assumptions The Fund is a not a foreign superannuation fund for Australian taxation laws. The non-taxable component referred to is corpus amounts that are assessable under section 99B(1) of the ITAA 1936 that are wholly reduced from assessable income by subsection 99B(2)(a) of the ITAA 1936. Summary Future withdrawals of the accumulated earnings since the inception of the Fund, will be subject to an interest charge under section 102AAM of the ITAA 1936. Withd