29 May 077 Tax Board's review of Foreign Source Income Anti-Tax-Deferral RegimesIn a press release issued on 25 May 2007, the Chairman of the Board of Taxation, Mr Dick Warburton, announced the release of a discussion paper on possible reforms to Australia’s foreign source income anti-tax-deferral regimes (the controlled foreign company rules, the foreign investment fund rules, the transferor trust rules and the deemed present entitlement rules).
The Treasurer announced on 10 October 2006 a review into the rules to be conducted by the Board. The Treasurer asked the Board to identify ways to reduce the complexity and compliance costs associated with these rules, including whether the regimes can be collapsed into a single regime, and to examine whether the regimes strike an appropriate balance between effectively countering tax deferral and unnecessarily inhibiting Australians from competing in the global economy.
The Board welcomes submissions on the issues raised in the discussion paper. The closing date for submissions is 6 July 2007.
For a copy of the Board's press release, No 15, 25 May 2007, go here
For a copy of the Discussion Paper, go here