14. Foreign income and net assets
Complete at item 14, labels:
- A Attributed foreign income – listed country
- C Attributed foreign income – unlisted country
- F Net assets available to pay benefits
A Attributed foreign income – listed country
Show at A the amount of attributed foreign income from controlled foreign entities and transferor trusts in listed countries. Listed countries are set out in Part 8, regulation 19 of the Income Tax Assessment (1936 Act) Regulation 2015.
Attributed foreign income includes the income attributed to the taxpayer from controlled foreign companies, calculated in accordance with Division 7 of Part X of the ITAA 1936, and includes amounts grossed up under section 392 of the ITAA 1936, as appropriate, to the extent of any foreign or Australian taxes paid.
Attributed foreign income from transferor trusts is the total amount of income attributed to the taxpayer from a transferor trust that is a listed country trust estate (as defined in section 102AAE of the ITAA 1936), calculated in accordance with Subdivision D of Division 6AAA of Part III of the ITAA 1936, and reduced under paragraph 102AAU(1)(d) of the ITAA 1936, as appropriate, to the extent of any foreign or Australian taxes paid.
C Attributed foreign income – unlisted country
Show at C the amount of attributed foreign income from controlled foreign entities in unlisted countries.
Unlisted countries are countries not listed in Part 8, regulation 19 of the Income Tax Assessment (1936 Act) Regulation 2015.
Show also at C the amount of income attributed from a transferor trust if the amount has not been included at A Listed country.
For more information about the exemptions and calculation of the amounts to be reported at A or C, see the Foreign income return form guide 2018–19.
F Net assets available to pay benefits
Show at F the total value of net assets available to pay benefits, including items such as life policies, units held in PSTs and assets funding current pension liabilities at the balance date. If the value of life policies is not known, use the total of contributions to date.
15. Transfer of liabilities to life insurance company or pooled superannuation trust
Has the fund, with consent of the transferee, transferred assessable contributions under section 295-260 to a life insurance company or pooled superannuation trust?
Print X in the appropriate box at A.
If the answer at A is Yes then print:
- the name of the life insurance company or PST
- the ABN of the life insurance company or PST
- the amount of the contributions transferred to each transferee at B and D
- the market value of the transferor’s investment in each of the transferees at C and E.
Where there are more than two transferees, provide details of the two transferees that have the greatest market value.
The investments of a fund or ADF in a life insurance company or PST may include items such as life insurance policies and units held in PSTs at the balance date.
Investment in any other life insurance policies or pooled superannuation trusts
Show at F the total market value of investments in any other life insurance policies or PSTs that have not been included above.
For C, E and F, market value is to be given its ordinary meaning in accordance with and subject to Subdivision 960-S of the ITAA 1997.
16. Taxation of financial arrangements (TOFA)
Show at H and I the total assessable gains and total deductible losses made from financial arrangements under the TOFA rules (unless it was made only because the fund held a qualifying security).
For more information about when the TOFA rules apply to funds, see:
H Total TOFA gains
Show at H the fund’s total assessable TOFA gains from financial arrangements.
I Total TOFA losses
Show at I the fund's total deductible TOFA losses from financial arrangements.
Ensure you take into account at H and I assessable gains or deductible losses made from financial arrangements subject to the TOFA rules that you have shown at:
- C Gross interest item 10
- D Net foreign income item 10
- D1 Gross foreign income item 10
- I Gross distribution from partnerships item 10
- J Unfranked dividend amount item 10
- N Trust distributions unfranked amount item 10
- Q Trust distributions other amounts item 10
- G Foreign Exchange Gains item 10
- S Other income item 10
- A Interest expenses within Australia item 11
- B Interest expenses overseas item 11
- R Foreign exchange losses item 11
- L Other deductions item 11.
17. Overseas transaction or interest and foreign source income
You must answer this question even if the fund has no overseas transactions or interests.
A and B International related party dealings and transfer pricing
A Did the fund have any transactions or dealings with international related parties, irrespective of whether they were on revenue or capital account?
Print X in the appropriate box.
International related parties are associated entities or persons, including permanent establishments, who are parties to international (that is, cross border) dealings which may be subject to:
- Subdivision 815-B or 815-C of the ITAA 1997
- the business profits article of a relevant tax treaty, or
- the associated enterprises article of a relevant tax treaty.
International related parties include:
- any overseas entity or person who participates directly or indirectly in the fund’s management, control or capital
- any overseas entity or person in respect of which the fund participates directly or indirectly in the management, control or capital
- any overseas entity or person in respect of which persons who participate directly or indirectly in its management, control or capital are the same persons who participate directly or indirectly in the fund’s management, control or capital
- a permanent establishment and its head office
- two permanent establishments of the same person.
‘Participates’ includes a right of participation, the exercise of which is contingent on an agreed event occurring. ‘Person’ has the same meaning as in subsection 6(1) of the ITAA 1936 and section 995-1 of the ITAA 1997.
The type of dealings or transactions that will require the fund to select Yes at this question are dealings by the entity with international related parties as mentioned above, such as an overseas holding company, overseas subsidiary, overseas permanent establishment of the entity, or non-resident trust in which the entity has an interest.
These international dealings or transactions may be for the provision or receipt of services, or transactions in which money or property has been sent out of Australia, or received in Australia from an overseas source during the income year. The dealings may also include transfers of tangible or intangible property, provision or receipt of services, or the provision or receipt of loans or financial services.
If money or property is not actually sent out of Australia or received in Australia, but accounting entries are made that have the effect of money or property being transferred, this is also to be taken as an international transaction.
Was the aggregate amount of the transactions or dealings with international related parties (including the value of property transferred or the balance outstanding on any loans) greater than $2 million?
Print X in the appropriate box.
The aggregate amount of the dealings is the total amount of all dealings, whether on revenue or capital account, and includes the balance of any loans or borrowings outstanding with international related parties.
Transactions must not be netted off against each other. Hence, a $600,000 purchase from, and a $700,000 sale to, a related party should be treated as totalling $1,300,000 not $100,000.
C Overseas interests
Did the fund have an overseas branch or a direct or indirect interest in a foreign trust, foreign company, controlled foreign entity or transferor trust?
Print X in the appropriate box.
An interest in a controlled foreign company or trust may be either direct or indirect, and is taken to have the same meaning as set out in Division 3 Part X of the ITAA 1936.
A fund has an interest in a transferor trust if it has ever made, or caused to be made, a transfer of property (including money) or services to a non-resident trust. ‘Transfer’, ‘property’ and ‘services’ are defined in section 102AAB of the ITAA 1936. Sections 102AAJ and 102AAK of the ITAA 1936 provide guidance in relation to whether there has been a transfer or deemed transfer of property or services to a non-resident trust.
D Foreign source income
Was the amount of foreign income tax paid greater than $100,000 OR was the amount of assessable foreign income greater than $500,000?
Print X in the appropriate box.
Assessable foreign income is all assessable income sourced from overseas, and includes interest, dividends, attributable income through the controlled foreign company (CFC) regime, and foreign-sourced capital gains.
For more information on foreign income tax, see:
- Guide to foreign income tax offset rules 2019.
For more information on foreign sourced capital gains, see:
- Foreign income return form guide 2019
- Guide to capital gains tax 2019.
E Transactions with specified countries
Print X in the appropriate box.
Did the fund directly or indirectly send to, or receive from, one of the countries in the specified countries and jurisdictions list below, any funds or property? This includes sending or receiving the funds or property indirectly, for example, through another entity or country.
Or does the fund have the ability to control the disposition of any funds, property, investments or any other assets located in any of the countries or jurisdictions in the specified countries and jurisdiction list below?
This includes:
- funds or assets that may be located elsewhere but are controlled or managed from one of the countries in the specified countries list below
- where you have an expectation that you are able to control the disposition of the funds or assets or you can control the disposition indirectly, for example, through associates.
Specified countries and jurisdictions
- Andorra
- Anguilla
- Antigua and Barbuda
- Aruba
- Bahamas
- Bahrain
- Barbados
- Belize
- Bermuda
- British Virgin Islands
- Cayman Islands
- Cook Islands
- Curacao
- Cyprus
- Dominica
- Gibraltar
- Grenada
- Guernsey
- Hong Kong
- Ireland
- Isle of Man
- Jersey
- Labuan in Malaysia
- Liberia
- Liechtenstein
- Luxembourg
- Marshall Islands
- Mauritius
- Monaco
- Montserrat
- Netherlands
- Nauru
- Niue
- Panama
- Samoa
- Sint Maarten (Dutch part)
- San Marino
- Seychelles
- Singapore
- St Kitts and Nevis
- St Lucia
- St Vincent and the Grenadines
- Turks and Caicos Islands
- Switzerland
- US Virgin Islands
- Vanuatu
18. Other transactions
Complete at item 18, labels:
- A Exempt current pension income
- B Death or disability deduction
- C If Yes, has the fund or trust obtained the relevant certificate?
- D Payments to contributing employers and associates
A Exempt current pension income
Print X in the appropriate box.
If the fund has claimed an amount of exempt current pension income in respect of retirement phase superannuation income stream benefits, other than those prescribed by the income tax regulations where assets are fully segregated for all of the income year, has the trustee obtained the relevant actuary’s certificate or certificates required by sections 295-385 or 295-390 of the ITAA 1997 before the exemption can be claimed?
Retirement phase superannuation income stream benefits prescribed by regulation 295-385.01 of the Income Tax Assessment Regulations 1997 are retirement phase superannuation income stream benefits payable from:
- an allocated pension
- a market linked pension
- an account-based pension
within the meaning of the SIS Regulations.
B Death or disability deduction
Is the fund or trust claiming a deduction for premiums for death or disability cover of a member under section 295-465 of the ITAA 1997 that requires an actuary’s certificate to be obtained?
Print X in the appropriate box.
C If Yes, has the fund or trust obtained the relevant certificate?
Print X in the appropriate box.
D Payments to contributing employers and associates
Has the fund or trust made a payment or transferred a benefit that is included in the assessable income of the recipient under section 290-100 of the ITAA 1997?
Print X in the appropriate box.
Continue to: Section G: Declarations