In media release No 2010/078, issued on 28 April 2010, the Assistant Treasurer, Nick Sherry, announced the release for public consultation of exposure draft legislation for an anti-roll-up fund rule that will apply to certain offshore investments.
The anti-roll-up fund rule is part of wider reforms to Australia’s foreign source income anti-tax-deferral rules that were announced in the 2009-10 Budget and follows the decision to repeal the foreign investment fund (FIF) rules.
“When legislated, the anti-roll-up fund rule will operate as a specifically targeted anti-avoidance rule that maintains the integrity of Australia’s tax system by targeting investments in certain offshore funds,” the Assistant Treasurer said.
“These funds accumulate profits in low-tax jurisdictions or at rates lower than Australian equivalent taxes and do not distribute them to their Australian investors.”
The closing date for submissions is Wednesday 26 May 2010.