• Step 1: Working out the movement in the cash surrender value - boxes A t o F

    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

    The movement in the cash surrender value of your interests in the FLP which have a cash surrender value at the end of the notional accounting period is worked out as follows. [subsection 596(2)]

    Use the same currency in boxes B to G as you use for the cash surrender value in box A. [subsection 596(3)]

    Box A

    Insert the cash surrender value of your interests in the FLP on the last day of the notional accounting period.

    Box B

    Insert the value of distributions the FLP made to you during the notional accounting period for those interests held on the last day of the notional accounting period.

    Boxes C and D

    If you disposed of an interest in the FLP during the notional accounting period, insert:

    • the amount you received for the disposal, and
    • the value of distributions the FLP made to you for that disposed interest.

    Box E

    Insert the opening cash surrender value of the interest at the commencement of the notional accounting period.

    If you used the deemed rate of return method for the same interest in the immediately preceding notional accounting period, use the value determined by that method for the last day of that period.

    Box F

    Insert the amount you paid or gave for contributions to the interest in the FLP during the notional accounting period.

    Box G

    Take away the sum of E and F from the sum of A to D. This gives you the FIF amount.

    • Gross FIF income

    If the FIF amount is positive, it is your gross FIF income from the FLP. [section 598]

    • FIF loss

    If the FIF amount is negative, a FIF loss has occurred. In certain circumstances, you may use this FIF loss to offset your assessable income in later income years. See Chapter 6: Avoiding double taxation. [sections 533 and 599]

    Last modified: 27 May 2005QC 17512