The Tax Laws Amendment (Investment Manager Regime) Bill 2012 was introduced in the House of Reps this on Thur 21.6.2012. It contains the first 2 elements of the Government’s proposed Investment Manager Regime.
The Bill proposes to amend the ITAA 1997 to prescribe the treatment of returns, gains, losses and deductions, on certain investments of widely held foreign funds – so-called: ‘conduit income’. The amendments will apply where the returns or gains would otherwise be assessable income of the fund only because they are attributable to a permanent establishment in Australia which arises solely from the use of an Australian based agent, manager or service provider. This measure is often referred to as the “conduit income” measure or “Element 2” of the investment manager regime (IMR).
The Bill also proposes to amend the Income Tax (Transitional Provisions) Act 1997 to prescribe the taxation treatment of certain returns, gains, losses and deductions for the 2010-11 and earlier income years of widely held foreign funds, which have not lodged a tax return and have not had an assessment made of their income tax liability. This measure is often referred to as the “FIN 48” measure or “Element 1” of the IMR.
DATE OF EFFECT: The Element 2 amendments will apply to assessments for the 2010-11 income year and later income years. The Element 1 amendments will apply for the 2010-11 income year and previous income years.
[LTN 118, 21/6]
Bill passes Lower House
The Tax Laws Amendment (Investment Manager Regime) Bill 2012 was on Wed 27.6.2012, passed by the House of Reps without amendment and now moves to the Senate. It contains the first 2 elements of the Government’s proposed Investment Manager Regime.
[LTN 122, 27/6]