NEWS

Under GST law, input tax credits are only available where they relate to acquisitions that are made for a ‘creditable purpose’.  Acquisitions that relate to making ‘input taxed supplies’ are not made for a creditable purpose.  This is a GST key issue in the financial services industry due to the number of ‘financial supplies’ which…

The Federal government is continuing it’s commitment to Australia becoming a regional financial services hub with the on-going development of the Managed Investment Trust regime, a concessional withholding tax regime aimed at foreign investment. Australian managed investment trusts (MITs) are eligible for the following important tax concessions: Concessional withholding tax rates for ‘fund payments’ made…

Complying Managed Investment Scheme One Cash Management Fund On 24 November 2012, the Federal Government introduced a new visa referred to as the ‘Significant Investor Visa’ (subclass 188) which enables migrant investors who invest $5 million in complying Australian investments for (at least) 4 years, the ability to secure permanent residence. Under the new visa…

In an effort to curb perceived tax abuses by U.S. persons with offshore bank accounts and/or investments, the US Congress passed broad, sweeping legislation intended to combat offshore tax evasion by such persons. Specifically, the Foreign Account Tax Compliance Act (FATCA) (signed into law on March 18, 2010) incorporates a new chapter 4 reporting regime…

The new Significant Investor Visa was launched on 24 November 2012. The new visa program provides Australian companies and fund managers with an opportunity to market products to high net worth individuals seeking investment immigration.  The visa program is expected to prove popular with immigrants from Asia, particularly from China. This new visa requires applicants…

ASIC has recently released a new consultation paper proposing changes to the financial requirements for providers of custodial or depositary services and responsible entities of managed investment schemes and platform operators that hold scheme property or other property and assets. Background on the proposed changes can be found in ASIC’s media release. This follows the…

On 24 October 2012, the Assistant Treasurer released a Policy Options Paper, seeking to further progress the Government’s modernisation of the Australian trust income tax provisions and broader reform of Division 6 of the Income Tax Assessment Act 1936. The Policy Options Paper follows the Initial Consultation Paper, released in November 2011, and provides further…

On 4 October 2012, the Victorian Court of Appeal in 360 Capital Re Limited v Watts & Ors [2012] VSCA 234 delivered a unanimous judgement affirming the decision of Sifris J by declaring unilateral amendments made by the responsible entity (RE) of the 360 Capital Industrial Fund to be invalid. The judgment also addressed the…

ASIC has recently released Consultation Paper 188 (CP 188). CP 188 outlines proposals to update its guidance relating to the content requirements of Constitutions of registered Managed Investment Schemes. In CP 188 ASIC has noted that RG 134 ‘Managed Investments: Constitutions’, was released in 1998 and last updated in 2000 when the managed investments regime…

ASIC released guidance on new disclosure benchmarks and principles for hedge funds entitled ‘Hedge funds: Improving disclosure’ (Regulatory Guide 240 (“RG 240”)) on 18 September 2012. This follows industry consultation and the Parliamentary Joint Committee on Corporations and Financial Services report into the Trio collapse in which $176 million of superannuation funds were lost. ASIC…