Foreign trusts



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

End of attention

An interest in a FIF that is a foreign trust is:

  • an interest in the capital or income of the trust - including a unit in a unit trust, or
  • a legal document that confers an entitlement to acquire such an interest including an entitlement arising from an option or convertible note. [subsection 483(2)]

Eligible finance share

A share in a company is an eligible finance share if:

  • the shareholder is an Australian financial institution or subsidiary
  • the share was issued by the company in the ordinary course of business carried on by the shareholder, and
  • the shareholder is not an associate of the company.

Section 327 of the ITAA 1936 has more detail.

Last modified: 27 May 2005QC 17512