The Government on Fri 31.1.2014, released a further exposure draft of legislation for the 3rd and final element of the Investment Manager Regime (“IMR”).

The draft legislation will amend the ITAA 1997 to include a new Subdiv 842-I to set out rules about the taxation of certain foreign funds (known as IMR foreign funds) that invest into or through Australia. It is designed to remove tax impediments to foreign investment into or through Australia by foreign managed funds. Under this legislation, the gains of qualifying foreign funds from the disposal of certain financial arrangements will be exempt from Australian tax. These rules will not apply in relation to Australian residents.

COMMENTS are due by 14 February 2014.

[LTN 20, 31/1/14]