Taxation Ruling

IT 2189

Income tax : superannuation : section 23FB and paragraph 23(ja) - payment of benefits in specie

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FOI status:

FACTS

Taxation Ruling No. IT 2027 states that the payment of superannuation benefits otherwise than in cash would not cause exemption under section 23F to be forfeited provided certain provisions were inserted in the governing trust deed. The question was raised recently whether the ruling should be extended to funds approved for purposes of section 23FB or paragraph 23(ja) of the Income Tax Assessment Act.

RULING

The ruling is extended to apply to superannuation funds established under section 23FB or paragraph 23(ja) provided provisions similar to those set out hereunder are inserted in the trust deed governing the fund :-

"The trustee may with the agreement of the member or beneficiary to whom a benefit is payable transfer investments of the fund of equivalent value to such member or beneficiary in lieu of paying the whole or part of the amount otherwise payable under Clause ... provided the trustee receives from the Commissioner of Taxation an acknowledgement that such transfer will not cause the fund to fail to satisfy the requirements of (section 23FB or paragraph 23(ja)) of the Income Tax Assessment Act 1936, as amended".

COMMISSIONER OF TAXATION
3 September 1985

References

ATO references:
NO 4 85/563-4

Date original memo issued:
26 July 1985

Related Rulings/Determinations:

IT 2027
IT 2189W

Subject References:
SUPERANNUATION
TRANSFER OF BENEFITS IN SPECIE

Legislative References:
23(ja)
23FB