D Net foreign income
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Show at D assessable income that the fund derived from foreign sources, including dividends (e.g. New Zealand franking company dividends and supplementary dividends), interest, attributable income though the controlled foreign company (CFC) regime and:
- add the foreign tax paid on that assessable income to give the ‘gross’ or pre-tax value
- subtract foreign source losses incurred in the current year (not CGT losses)
- subtract expenses to the extent to which they relate to foreign income.
If the total amount at D is a negative value, print L in the Loss box.
If the fund received franked dividends directly or indirectly from a New Zealand franking company, see Trans-Tasman imputation.
Do not subtract debt deductions in calculating net foreign income at D, except where they are attributable to an overseas permanent establishment of the fund. Show the debt deductions, which are not attributable to an overseas permanent establishment of the fund, at item 11 Deductions, as relevant, at:
- A Interest expenses within Australia
- B Interest expenses overseas
- I Investment expenses
- J Management expenses
- Q Administration expenses
- L Other deductions.
Do not reduce net foreign income by exempt current pension income. Exempt current pension income is shown at Y Exempt current pension income.
Do not show at D:
- foreign exchange gains and losses; such gains and losses (from both foreign and domestic sources) should be shown at G Foreign exchange gains or at R Foreign exchange losses item 11 Deductions as appropriate
- net foreign source capital gains; this should be shown at A Net capital gain.
- net foreign income to the extent it is non-arm’s length income of a complying superannuation fund, complying ADF or a PST; show this at U Net non-arm’s length income.
Complete and attach a Losses schedule 2014 if the fund has:
- total tax losses and net capital losses carried forward to later income years greater than $100,000
- an interest in a controlled foreign company (CFC) that has 2013–14 losses greater than $100,000
- an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
If the TOFA rules apply to the fund, include net foreign income from financial arrangements subject to the TOFA rules at D.
If what you show at D includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
Last modified: 05 Nov 2014QC 40267