Worksheet 1: Market value method

Complete the relevant parts of the worksheet for the interests you hold in the FIF.

Description of interests in the FIF ___________________________________________

Part 1

Express the amounts in B to D in the same currency as the amount in A. Alternatively, you may irrevocably elect to express the amounts in A to D in Australian currency. This will bring to account currency exchange gains and losses at the times the transactions and values relevant to the calculations occurred.

The market value of your interests held in the FIF on the last day of the notional accounting period (see chapter 2).

A

___________

The amount of all distributions you received from the FIF during the notional accounting period.

B

___________

The market value of the interest you held in the FIF on the day immediately before the first day of the notional accounting period for the interests in A.

C

___________

The amount you gave or paid for acquiring any interests in the FIF during the notional accounting period if that interest is included in A.

D

___________

Add C and D and take the total away from the sum of A and B.

E

___________

This is the FIF amount.
 

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

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

Part 2
 

Any unapplied previous FIF losses.

F

___________

Take the amount at F away from the amount at E.

G

___________

Convert to A$. If the amount at G is positive - that is, you have FIF income - and the amounts in part 1 were expressed in foreign currency, convert the amount at G to Australian currency and include it at H. Use the rate of exchange applying at the end of the notional accounting period. If the amount at G is in Australian currency, include the same amount at H. If the amount at G is negative, you can take that amount into account in future years as an unapplied previous FIF loss.

H

A$_________

Part 3
 

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

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

I

___________

If Yes, insert at J the amount, if any, of the distributions that are of the type to which subsection 530(1) applies. Include at J any reductions of FIF income under employee share acquisition schemes. See Reduction of FIF income for distributed profits in chapter 6.

J

___________

Take J away from H.

K

___________

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

If the amount at K 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.