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New On The Lowtax Network Today
This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below. |
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| TODAY 11/03: Estonia
Summary PBTG Guide, added to Personal Business Tax Guide |
| 10/03 Lowtax
Labuan, annual update |
| 09/03 Word
Search Puzzle, on Lowtax |
| 08/03 Jobs
For All,
Jeremy Hetherington-Gore blog |
| 05/03 Belgium
Summary PBTG Guide,
added to Personal Business Tax Guide |
| 04/03 New
Lowtax Editor Column,
by Kitty Miv |
03/03  Personal
Business Tax Guide, PBTG, has launched!
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| Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers. |
| 02/03 Personal
Equity Investment In 2010: Not Just For Expats…, Investors Offshore special feature
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| 24/02 Lowtax
Cyprus, annual update
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| 22/02 Lowtax
Brunei, annual update
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| 17/02 Dubai
- A Stately Business Dome Decreed, Investors Offshore special feature
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| 15/02 Lowtax
Australia,
major content expansion
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| 27/01 Lowtax
Germany, major content expansion
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| Lowtax Network Sites |
| Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail. |
| Tax News: Global
tax news, continuously updated through the day. |
| Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor. |
| Law & Tax
News: Daily news and background data on tax and legal developments
for international business. |
| Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation. |
| Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources. |
| US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax. |
| NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers. |
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| Australia Consults On Reform Of Controlled Foreign Company Rules |
by Mary Swire, Tax-News.com, Hong Kong
Wednesday, January 06, 2010
As part of wider reforms to Australia's foreign source income anti-tax-deferral
rules, originally announced in the 2009-10 budget, the Assistant Treasurer,
Nick Sherry has released a consultation paper on reforms to the controlled foreign
company (CFC) tax rules.
As part of the same reforms, draft legislation to repeal the foreign investment
fund rules and deemed present entitlement rules was released for comment last
month. The remaining parts of those reforms, to the transferor trust and anti-roll
up rules, are still being developed.
The Australian Treasury, in the consultative paper, lays down the benchmarks
of the new reform. There are, it says, legitimate commercial reasons why residents
invest capital in foreign active businesses, which should be taxed at the same competitive level as other investments in that jurisdiction.
There will continue to be an “active business test”, where the
active conduct of a trade or business by an entity “means the competitive
participation by the entity in industrial, commercial or financial undertakings,
evidenced by human activity through a permanent establishment”, the Treasury explained.
However, it continued, foreign passive investment should not be favoured over
domestic passive investment. Foreign passive investment will continue to be
treated the same as capital that is invested in Australia, and the benefit of
deferral should be eliminated to remove any potential bias in favour of capital
exported.
As a consequence, the policy objective of the CFC rules is to ensure that passive
investment decisions of Australian resident taxpayers are not distorted by tax
considerations, thereby protecting Australian tax revenue. In achieving
this objective, however, the rules should also minimise compliance and administrative
costs.
The actual policy giving effect to this objective is therefore to tax resident
taxpayers on an accruals basis on their calculated share of the passive income
accumulating in a foreign entity that they hold an interest in.
Releasing the paper, Nick Sherry explained that: "The existing CFC rules were
designed to address integrity risks to the Australian tax base – but this
must be balanced against other policy objectives such as equity, efficiency,
simplicity and low compliance costs."
"These proposals will further improve the competitiveness of Australian
businesses which have offshore operations by better targeting the rules to those
areas at risk of inappropriate tax deferral while reducing red tape and compliance
costs for those businesses."
He added that further input from interested parties will assist significantly
in drawing up the final legislation. Submissions must be made by March 1,
2010.
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| THE LOWTAX LIBRARY
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