On 17 February 2011 the Assistant Treasurer released for public consultation the exposure draft legislation on both the reform of the controlled foreign company (CFC) rules and the foreign accumulation fund (FAF) rule.
These reforms were announced in the 2009-10 Budget as part of wider reforms to Australia’s foreign source income anti-tax deferral attribution rules.
The reform of the CFC rules will replace Part X of the Income Tax Assessment Act 1936 and the FAF rule seeks to address the most abusive cases of deferral in the non-control environment following the repeal of the foreign investment fund regime.
Making a submission
Interested parties are invited to comment on the exposure draft legislation. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
Closing date for submissions: Friday, 18 March 2011
Address written submissions to:
International Tax Project Unit
International Tax and Treaties Division
PARKES ACT 2600
Fax: (02) 6263 4352
For enquiries regarding the CFC rules please call:Haydn Daw (02) 6263 2969 John Nagle (02) 6263 4461
Peter Peters (02) 6263 2969
For enquiries regarding the FAF rules please call:Kristy Baker (02) 6263 2708