Foreign investment funds guide 2008-09

Determining the amount of FIF income to include in your assessable income

There are three methods for working out taxation for an interest in a FIF and two methods for an interest in a FLP, depending on your access to certain information on the FIF or FLP.

Interest in a FIF – read Chapter 4: Methods of FIF taxation

• Most taxpayers liable to tax under the FIF measures will use the market value method.
• Use the deemed rate of return method if you are unable to establish a market value for your FIF interest and you have not elected to use the calculation method.
• Use the calculation method if you have access to the financial accounts of the FIF and you are able to determine the FIF's calculated profit or calculated loss. For income years commencing on or after 1 July 2008 certain taxpayers using the FIF calculation method to determine income to be attributed from a foreign company have a further choice (within that method) to calculate that income using the CFC rules.

Interest in a FLP – read Chapter 5: Foreign life assurance policies

If you have invested in a FLP, you can use:

• the deemed rate of return method, or
• the cash surrender method.

Sections within Foreign investment funds guide 2009

• Abbreviations
• Determining the amount of FIF income to include in your assessable income

Last Modified: Monday, 7 September 2009