What is a foreign investment fund (FIF)?
A FIF is any foreign company or foreign trust. [subsection 481(1)]
A foreign company is a company that is not resident in Australia, according to the definition of a 'resident of Australia' in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) and the residency provisions of any relevant double taxation agreement. [subsection 481(2)]
A trust estate is a foreign trust if it:
- is not an Australian trust, a resident superannuation fund, a complying approved deposit fund or a pooled superannuation trust, and
- did not result from:
- a will, a codicil or a court order that varied or modified a will or a codicil, or
- intestacy or a court order that varied or modified the application of the law relating to the distribution of the estates of persons who die without leaving a will. [subsection 481(3)]