Foreign investment funds guide (current to 30 June 2010)

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Worksheets

This document has been archived. It is current only to 30 June 2010.

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.

  

Worksheet 2: Deemed rate of return method for FIFs

Complete the relevant parts of the worksheet for the interests you held in the FIF on the last day of the notional accounting period (see chapter   2). Interests in the FIF which you disposed of before the end of the notional accounting period are not taxed under FIF measures.

Part 1

  

Description of the group of interests in the FIF. _________________________________

Opening value.

 

A

___________

Multiply A by the deemed rate of return.

 

B

___________

Multiply B by

the number of days in the notional accounting period

for which you held the interests in the group


365

C

___________

Part 2

  

Convert the amount at C to Australian currency at the rate of exchange applying at the end of the notional accounting period.

 

D

A$_________

Part 3

  

If you have more than one group of interests in the FIF and completed more than one part   1 and part   2, add the amounts in each box D and show the total amount at E .

 

  

If you had only one interest in the FIF, copy the amount from D to E .  

E

___________

Part 4

  

Did you receive any distributions from the FIF during the notional accounting period? See chapter   6 for information about reductions of FIF income.

 

  

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

 

F

___________

If Yes , insert the amount, if any, of the distributions that are of the type to which subsection 530(1) of the ITAA 1936 applies. Include any reductions of FIF income for employee share acquisition schemes - see chapter   6 . [section 530A]

 

G

___________

Take G away from E .

 

H

___________

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

If the amount at H 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.

  

Worksheet 3: Calculation method

Complete the relevant parts of the worksheet for those interests you held in the FIF on the last day of the notional accounting period (see chapter   2). Interests in the FIF that you disposed of before the end of the notional accounting period are not taxed under the FIF measures.

Description of interests in the FIF. ___________________________________________

Part 1 - Use the currency in which the accounts of the FIF are made out.

  

The notional income of the FIF for the notional accounting period.

 

A

___________

The notional deductions of the FIF for the notional accounting period.

 

B

___________

Take B away from A .

 

C

___________

If the amount at C is negative, the FIF has a calculated loss. This loss is allowed as a notional deduction for the same FIF in future years.

If the amount at C is positive, the FIF has a calculated profit. Go to part   2.

 

  

Part 2

  

If the amount at C is positive, convert the amount to Australian currency at the rate of exchange applying at the end of the notional accounting period. Now complete parts   3 and 4, as appropriate.

 

D

A$_________

Part 3

  

Complete this part for interests you held in the FIF for the entire notional accounting period.

 

  

Your attribution percentage for your interest in the FIF held for the whole of the notional accounting period.

 

E

_________%

Multiply D by E .

 

F

___________

Part 4

  

Complete this part for interests in the FIF acquired throughout a particular part of the notional accounting period. Do not apply the calculation method for interests in the FIF which you dispose of before the end of the notional accounting period. These interests may be dealt with under other provisions of the taxation Acts - for example, the capital gains tax provisions. Repeat part   4 for interests in the FIF that you acquired at different times throughout the notional accounting period.

 

  

Your attribution percentage for interests in the FIF held throughout a particular part of the notional accounting period.

 

G

_________%

Multiply D by G .

 

H

___________

Multiply H by

the number of days in the notional accounting

period for which you held the interests in the FIF


the number of days in the notional accounting period (generally 365)

I

___________

Part 5

  

Add F and I , where applicable, to determine your FIF income.

 

J

___________

Now go to part 6.

 

  

Part 6

  

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

 

  

If No , then the amount at J is not reduced. Copy the amount from J to K .

 

  

Include this amount in your assessable income.

 

K

___________

If Yes , insert the amount, if any, of the distributions that are of the type to which subsection 530(1) of the ITAA 1936 applies. Include any reduction of FIF income resulting from employee share schemes. [section 530A] See chapter   6 for more information.

 

L

___________

Take L away from J

 

M

___________

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

If the amount at M 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.

  

Worksheet 4: Deemed rate of return method for FLPs

Complete the relevant parts of the worksheet for the interests you hold in the FLP. Read Deemed rate of return method in chapter   5 for more information.

Part 1

  

Description of the interests in the FLP. _________________________________

Opening value.

 

A

___________

Multiply A by the deemed rate of return.

 

B

___________

Multiply B by

the number of days you held the interest in

the FLP during the notional accounting period


365

C

___________

Part 2

  

Convert the FIF amount at C to Australian currency at the rate of exchange applying at the end of the notional accounting period.

 

D

A$_________

Part 3

  

If you have more than one interest in the FLP and completed more than one part   1 and part   2, add the amounts in each box D and show the total amount at E .

 

  

If you had only one interest in the FLP, copy the amount from D to E .

 

E

___________

Part 4

  

Did you receive any distributions from the FLP during the notional accounting period? See chapter   6 for information about reductions of FIF income.

  

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

 

F

___________

If Yes , insert the amount, if any, of the distributions that are of the type to which subsection 530(1) applies - see chapter   6 .

G

___________

Take G away from E .

 

H

___________

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

If the amount at H 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.

  

Worksheet 5: Cash surrender value method for FLPs

Complete the relevant parts of the worksheet for the interests you hold in the FLP. See Cash surrender value method in chapter   5 for more information.

Description of interests in the FLP. ___________________________________________

Part 1 - Express the amounts in B to G in the same currency as the amount in A .

  

The cash surrender value of your interests held in the FLP on the last day of the notional accounting period.

 

A

___________

The amount of distributions you received from the FLP during the notional accounting period for those interests you held on the last day of the period.

 

B

___________

Where you have disposed of interests in the FLP during the notional accounting period, write:

  
  • the amount of distributions you received for those interests from the FLP during the notional accounting period - if more convenient, include this amount at B - and

C

___________

  • the amount you received for the disposal of the interests in the FLP.

     

D

___________

The cash surrender value of the interests you held in the FLP on the day immediately before the first day of the notional accounting period or the deemed rate of return value for the same interests on the last day of the previous period where the deemed rate of return method was used for that period.

 

E

___________

The amount you paid for acquiring any interest in the FLP during the notional accounting period.

 

F

___________

Add E and F and take the total away from the sum of A to D .

 

G

___________

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

 

  

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

  

Part 2

  

Enter any unapplied previous FIF losses.

 

H

___________

Take away the amount at H from the amount at G .

 

I

___________

If the amount at I is positive - that is, you have FIF income - convert the amount to Australian currency at the rate of exchange applying at the end of the notional accounting period. If the amount at I is negative, you may use the amount in future years as an unapplied previous FIF loss.

 

J

A$_________

Part 3

  

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

 

  

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

 

K

___________

If Yes , insert the amount, if any, of the distributions that are of the type to which subsection 530(1) applies - see chapter   6 .

 

L

___________

Take away L from J .

 

M

___________

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

If the amount at M 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.

  
Last Modified: Tuesday, 29 June 2010

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ATO references:
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Foreign investment funds guide (current to 30 June 2010)
  Date: Version:
  1 July 2001 Original document
  1 July 2007 Updated document
  1 July 2008 Updated document
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