Foreign investment fund (FIF) calculation methods in cases of non-compliance

This QWBA explains that a person has a choice of methods to calculate FIF income even if they fail to declare the income in a tax return and later file a voluntary disclosure, or fail to file a tax return by the due date and later provide one including the income. It also explains what happens if a person does not file a return and the Commissioner issues a default assessment. This item is particularly relevant for natural persons and eligible trustees.

This question we’ve been asked (QWBA) is being issued for re-consultation as the Commissioner has changed his view from the one in the draft released for public consultation on 13 December 2022. The revised view reflects feedback received during that consultation. The Commissioner accepts that taxpayers have a choice of methods to calculate foreign investment fund (FIF) income even if they fail to declare the income in a tax return and later file a voluntary disclosure, or fail to file a tax return by the due date and later provide one including the FIF income.

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