Taxation (International Investment and Remedial Matters) Act 2012

Taxation (International Investment and Remedial Matters) Act 2012 amends the Income Tax Act 2007, Tax Administration Act 1994 and Stamp and Cheque Duties Act 1971.

The Taxation (International Investment and Remedial Matters) Bill was introduced into Parliament on 26 October 2010. It received its first reading on 9 November 2010, the second reading on 9 February 2012 and its third reading on 1 May 2012.

At the report-back stage of the Bill the Finance and Expenditure Committee recommended a number of changes to the legislation, including several intended to make the rules easier to apply.

The Taxation (International Investment and Remedial Matters) Act 2012 received Royal assent on 7 May 2012. It amends the Income Tax Act 2007, the Tax Administration Act 1994 and the Stamp and Cheque Duties Act 1971.

Overview
Applying the FIF rules
Extending the thin-cap rules to active and Australian FIFs
Alternative thin-capitalisation test for some low asset companies
State-owned banking groups
Exemption from the outbound rules
Application to non-residents with no fixed establishmen
Zero rate of AIL on retail bonds
AIL and associated persons remedial
Attributed foreign income - liability to tax
Active business test - clarifications and remedial amendments
Third-party royalties paid through a chain of CFCs
Amendments to the exemption for insurance CFCs
Attributing telecommunications income
Revaluing former grey list shares that were inherited at a nil cost
New residents' superannuation schemes
Repeal of branch equivalent tax accounts of companies and conduit tax relief accounts
Remedial amendments: Branch equivalent tax accounts of companies
Amendment to non-resident exclusion from conduit anti-avoidance rule
Losses of controlled foreign companies - transition
Foreign tax credits of controlled foreign companies - transitions
Other remedial changes

Reference

Public 2012 No 34

Issued

2012