Taxation Laws Amendment Act (No. 2) 1993 (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to foreign investment

Subdivision I   Certain foreign investment fund amount amendments

45   Step 1-calculation of foreign investment fund amount

Section 596 of the Principal Act is amended by omitting paragraph (2)(d) and substituting the following paragraph:

"(d) fourthly, if the taxpayer had an interest in the FLP on the day immediately before the first day of the period, deduct:

(i) if subparagraph (ii) does not apply-the cash surrender value of the interest on that day; or

(ii) if the deemed rate of return method was applied, in respect of the taxpayer's interest in the FLP, in respect of the notional accounting period immediately before the relevant period-the value, determined under Subdivision E in accordance with that method, of the interest on that day;".