On 6 August 2012, the Minister of Revenue released a Supplementary Order Paper (SOP) to be added to the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill.
The SOP deals with remedial items concerning the international tax reforms and taxation issues related to the Christchurch earthquake. The main items addressed are:
International tax measures
|-||improving the matching of the attributed income of a controlled foreign company (CFC) with the attributed deductions that are allowed for related expenditure or loss (e.g. exchange rate gains on a foreign-currency loan);|
|-||allowing a resident to elect not to apply the active business test for a CFC, but instead to incur tax on all passive income, so as to claim the related deductions;|
|-||including in the income potentially attributed from a CFC all income from a business of insurance or being an insurer;|
|-||limiting the exemption attributed from a CFC's income from some listed Australian companies; and|
|-||limiting the application of a test to determine whether a foreign investment fund's income from a foreign company is attributed to a resident|
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.