• Foreign trusts

    Attention

    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

    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