Is any part of the lump sum payment amount you received from the overseas fund while you were a resident of Australia for tax purposes, assessable income under subsection 99B(1) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Yes. However, this is subject to the exclusions contained in subsection 99B(2) of the ITAA 1936. This ruling applies for the following period: For the income year ended 30 June 20XX The scheme commenced on: 1 July 20XX
You (X) lived and worked in Country A (X) from 20XX until 20XX and accumulated earnings in your overseas fund's (X) account. In 20XX, you then moved to Australia and have lived here since then. You are no longer a permanent resident of Country A and you were required to withdraw the funds from your overseas fund's account by DDMMYYYY. The balance of AU$X was paid to you on DDMMYYYY to your bank account.
Income Tax Assessment Act 1936 section 99B Income Tax Assessment Act 1997 section 6-10 Income Tax Assessment Act 1997 section 10-5 Income Tax Assessment Act 1997 subsection 995-1(1) Superannuation Industry (Supervision) Act 1993 section 10 Superannuation Industry (Supervision) Act 1993 section 19 Superannuation Industry (Supervision) Act 1993 section 62 Summary The overseas fund does not meet the definition of a 'foreign superannuation fund' as per subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997). The overseas fund is considered to be a foreign trust and is subject to Australian tax under section 99B of the ITAA 1936. Detailed reasoning Meaning of 'foreign superannuation fund' A ' foreign superannuation fund' is defined in subsection 995-1(1) of the ITAA 1997 as follow