The Taxation Institute makes the following recommendations in respect of the FIF Repeal ED:
- Recommendation 1: The repeal of the foreign investment fund (FIF) provisions should apply to the 2009 income year or alternatively, at the latest, should apply to the 2010 income year.
- Recommendation 2: There should be no "sunset" for s.23AK or s.23B, as these provisions are designed to ensure that taxpayers are not subject to double taxation.
- Recommendation 3: Taxpayers should be able, for a limited time, to revoke elections previously made under s.485AA.
- Recommendation 4: The Taxation Institute reiterates its submission to Treasury on 9 June 2009 regarding the design of the proposed anti-roll-up provision.
- Recommendation 5: Item 74 of the FIF Repeal ED (removal of "trustee of a foreign trust for CGT purposes" from s.855-10(1)(a)) should be removed from the ED.
- Recommendation 6: Retrospective amendments should be made to the CFC provisions regarding s.401 and FIF attribution accounts for CFCs.