Taxation Laws Amendment Act (No. 2) 1993 (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to foreign investment

Subdivision I   Certain foreign investment fund amount amendments

44   Step 1-calculation of foreign investment fund amount

Section 538 of the Principal Act is amended by omitting paragraphs (2) (b) to (e) (inclusive) and substituting the following paragraphs:

"(b) secondly, add the amount or value of each distribution (if any) in respect of the interest, or any of the interests, held on that day that was made by the FIF to the taxpayer during the period;

(c) thirdly, if the taxpayer had that interest or any of those interests on the day immediately before the first day of the period, deduct:

(i) if subparagraph (ii) does not apply-the market value of the interest or interests on that day; or

(ii) if the deemed rate of return method was applied, in respect of the taxpayer's interest or interests in the FIF, in respect of the notional accounting period immediately before the relevant period-the value, determined under section 551 in accordance with that method, of the group or groups of interests of the taxpayer in the FIF on that day;

(d) fourthly, if the taxpayer acquired that interest or any of those interests during the period, deduct the amount or value of the consideration paid or given by the taxpayer in respect of the acquisition;

(e) fifthly, if the taxpayer disposed of any interest or interests in the relevant class or classes during the period, add the amount or value of each distribution (if any) in respect of that interest or those interests made by the FIF to the taxpayer during the period.".