18 February 2011 – The Assistant Treasurer has recently released Exposure Draft legislation for the proposed Foreign Accumulation Fund (“FAF”) rules – intended to replace the repealed Foreign Investment Fund (“FIF”) rules as well as the proposed rewrite of the Controlled Foreign Company (“CFC”) rules.
The release of the Exposure Drafts is welcoming news to both:
The proposed new rules for FAFs and CFCs are intended to remove some of the existing tax barriers that have deterred Australian outbound investment.
A copy of the exposure drafts is available at Exposure Draft – Reform of the foreign source income deferral rules
Industry and public submissions will be accepted by Treasury before the closing date, 18 March 2011.