• Worksheet 5 - Cash surrender value method for FLPs

    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

    Complete the relevant parts of the worksheet for the interests you hold in the FLP. See Cash surrender value method in chapter 4 for more information.

    Complete the relevant parts of the worksheet for the interests you hold in the FLP. See Cash surrender value method in chapter 5 for more information.

    Description of interests in the FLP. ___________________________________________

    Part 1 - Express the amounts in B to G in the same currency as the amount in A.

       

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

    A

    ___________

    The amount of distributions you received from the FLP during the notional accounting period for those interests you held on the last day of the period.

    B

    ___________

    Where you have disposed of interests in the FLP during the notional accounting period, insert:

    • the amount of distributions you received for those interests from the FLP during the notional accounting period - if more convenient, include this amount at B - and
     

    C

    ___________

    • the amount you received for the disposal of the interests in the FLP.
     

    D

    ___________

    The cash surrender value of the interests you held in the FLP on the day immediately before the first day of the notional accounting period or the deemed rate of return value for the same interests on the last day of the previous period where the deemed rate of return method was used for that period.

    E

    ___________

    The amount you paid for acquiring any interest in the FLP during the notional accounting period.

    F

    ___________

    Add E and F and take the total away from the sum of A to D.

    G

    ___________

    This is the gross FIF income amount. If the amount at G is negative, you have incurred a current year FIF loss. You may take this loss into account in future years as an unapplied previous FIF loss, but only for the same FLP.

       

    If the amount at G is positive, go to part 2.

       

    Part 2

       

    Enter any unapplied previous FIF losses.

    H

    ___________

    Take away the amount at H from the amount at G.

    I

    ___________

    If the amount at I is positive - that is, you have FIF income - convert the amount to Australian currency at the rate of exchange applying at the end of the notional accounting period. If the amount at I is negative, you may use the amount in future years as an unapplied previous FIF loss.

    J

    $A_________

    Part 3

       

    Did you receive any distributions from the FLP during the notional accounting period?

       

    If No, then the amount at J is not reduced. Copy the amount from J to K. Include this amount in your assessable income.

    K

    ___________

    If Yes, insert the amount, if any, of the distributions that are of the type to which subsection 530(1) applies - see chapter 6.

    L

    ___________

    Take away L from J.

    M

    ___________

    If the amount at M is positive, include it in your assessable income.

    If the amount at M is negative, do not include any amount in your assessable income under the FIF measures.

    For details on how to complete your tax return, refer to the attributed foreign income question in TaxPack or the instruction guides for company, trust, partnership and superannuation fund tax returns.

       
    Last modified: 21 Nov 2005QC 18001