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Exposure Draft - Investment Manager Regime Amendments


Tuesday, 16 August 2011

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On 17 December 2010, the Assistant Treasurer announced that the Government would introduce amendments to the tax law to prevent the Australian Taxation Office from raising assessments for certain investment income of foreign managed funds for the 2009-10 income year and previous income years. This announcement was made to address a key area of investment uncertainty for US-based fund managers investing in Australia arising from the application of US accounting standard 'FIN 48'. In the 2011-12 Budget, the Government announced that it would extend the measure to include the 2010-11 income year.

On 19 January 2011, the Assistant Treasurer announced that the Government would introduce changes to the tax treatment of certain investment income of foreign funds where those funds are taken to have a permanent establishment in Australia by virtue of the fact they have engaged an Australian based intermediary. These changes are often referred to as the 'conduit income' amendments. Under the change, income from relevant investments of a foreign fund, that is taken to have a permanent establishment in Australia, will be exempt from income tax.

The Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon Bill Shorten MP, has now released exposure draft legislation for the proposed changes.

The FIN 48 changes apply to the 2010-2011 income year and prior years. The conduit income changes apply from the 2010-2011 income year.

Making a submission

Interested parties are invited to comment on the exposure draft legislation. While submissions may be lodged electronically, by post or by facsimile, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Tuesday, 30 August 2011

Address written submissions to:
The Manager
International Tax Framework Unit
International Tax and Treaties Division
The Treasury
Langton Crescent

Fax: (02) 6263 4352

Email: investmentmanager@treasury.gov.au

For enquiries, please call William Potts (02) 6263 3264.

Documents Available:

No Documents available.

Related Items:

Exposure Draft - Investor Manager Regime - Elements 1 and 2 - 7/03/2012

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