In this edition
The Assistant Treasurer released an Exposure Draft (on 17 February 2011) of the proposed new Foreign Source Income Deferral rules (the Exposure Draft).
The Exposure Draft sets out the proposed reforms for:
- Australia's Controlled Foreign Company (CFC) rules, and
- new integrity measures (following the repeal of the Foreign Investment Fund rules) in the form of Foreign Accumulation Fund (FAF) rules.
The Australian Government has announced that it intends as an interim measure to amend the Income Tax Assessment Act 1936 (the Tax Act) to:
- align the concept of 'income of the trust estate' (ie distributable income) with the tax law concept of 'net income of the trust estate' (ie taxable income), and
- ensure that franked distributions (including the attached franking credits) and capital gains can be streamed to specified beneficiaries.