INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XI - FOREIGN INVESTMENT FUNDS AND FOREIGN LIFE ASSURANCE POLICIES  

Division 18 - How to determine whether Foreign Investment Fund income accrued to a taxpayer from a FIF or a FLP  

Subdivision C - Deemed rate of return method for FIFs  

SECTION 547   VALUE OF INTERESTS AT START OF RELEVANT PERIOD (BEING 1 JANUARY 1993) - QUOTED PRICES  

547(1)   [Interest quoted on relevant day on stock market]  

If the interests in the group are included in a class of interests that were quoted on the relevant day on the stock market of an approved stock exchange, the value of the interests on that day is the amount worked out on the basis of the quoted price of such an interest on that day on that stock market.

547(2)   [Interest quoted within 12-month period before relevant day]  

If the interests in the group are included in a class of interests that were not quoted on the relevant day on the stock market of an approved stock exchange but were quoted on such a stock market within the period of 12 months immediately before that day, the value of the interests on that day is the amount worked out on the basis of the quoted price of such an interest on the latest day in that period on which the class of interests were so quoted.

547(3)   [Interests in trusts not quoted]  

If the interests in the group are interests in a trust that are included in a class of interests that were not quoted on a stock market of an approved stock exchange on the relevant day or within the period of 12 months immediately before that day:

(a) if there was on that day a buy-back or redemption price offered by the trustee or manager of the trust for such interests - the value of the interests on that day is the amount worked out on the basis of that price; or

(b) if paragraph (a) does not apply but there was within that period of 12 months such a buy-back or redemption price - the value of the interests on that day is the amount worked out on the basis of the latest such price that was offered within that period.

547(4)   [Conditions for subsec (3) to apply]  

Subsection (3) does not apply in relation to a buy-back or redemption price unless it:

(a) was publicly available and was offered to all persons having interests in that class; and

(b) was calculated by reference to the market values of the assets of the trust; and

(c) represents an arm's length valuation of the interest:

(i) in the case of a price referred to in paragraph (3)(a) - on the relevant day; or

(ii) in the case of a price referred to in paragraph (3)(b) - on the day it was offered.

547(5)   [Interest quoted in 2 or more stock markets]  

A reference in this section to a quoted price on the stock market of an approved stock exchange on a particular day of a class of interests is, if the class of interests are quoted on that day on 2 or more such stock markets, taken to be a reference to the quoted price on that day of that class of interests on whichever of those stock markets is nominated by the taxpayer.