Summary of how the foreign investment funds legislation could affect you

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

1. Did you have interests in a foreign company, a foreign trust or a foreign life policy? Read chapter 2 and chapter 5 of this guide.

2. If you were a resident at any time during the year of income did you:
   • Have an interest in a foreign investment fund (FIF) at the end of the income year, or
   • Have an interest in a foreign life policy (FLP) at any time during the income year?
    

Read chapter 2 and chapter 5 of this guide

3. Does an exemption apply to your interest in a FIF or FLP? Read chapter 3 of this guide.

Determining the amount of foreign investment fund 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 of this guide

• The majority of 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 your choice of the FIF's calculated profit or calculated loss.

Interest in a FLP - read chapter 5 of this guide

If you have invested in a foreign life policy, you can use:

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

Abbreviations