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EX 28: Meaning of FIF
or “Explains what counts as a foreign investment fund”
You could also call this:

“Rules for determining if you have a taxable interest in a foreign investment”

You have an attributing interest in a Foreign Investment Fund (FIF) if you have certain rights and none of the exemptions in sections EX 31 to EX 43 apply to those rights.

There are three types of rights that can give you an attributing interest in a FIF:

The first type is when you have a direct income interest in a foreign company or in an entity listed in schedule 25, part A. Section EX 30 explains what a direct income interest is.

The second type is when you have a FIF superannuation interest. This means you are a beneficiary or member of a foreign superannuation scheme.

The third type is when you have rights to benefit from a life insurance policy where a FIF is the insurer.

For the second and third types, it doesn’t matter if your rights are certain or if someone else gets to decide about them. They still count as an attributing interest.

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Next up: EX 30: Direct income interests in FIFs

or “Owning shares or having rights in a foreign company”
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Part E Timing and quantifying rules
Controlled foreign company and foreign investment fund rules: Attributing interests in FIFs

EX 29Attributing interests in FIFs

  1. A person has an attributing interest in a FIF if—

  2. the person holds rights in 1 of the categories of rights described in subsections (2) to (4); and
    1. none of the exemptions in sections EX 31 to EX 43 applies to those rights.

      1. The first category is a direct income interest, as defined in section EX 30, in a foreign company or in an entity described in schedule 25, part A (Foreign investment funds).

      2. The second category is a FIF superannuation interest, held as a beneficiary or a member.

      3. The third category is rights to benefit from a life insurance policy in relation to which a FIF is the insurer.

      4. The second and third categories include rights that are contingent or discretionary.

      Compare
      Notes
      • Section EX 29(1)(b): amended (with effect on 1 April 2008), on , by section 166 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EX 29(3) heading: replaced, on , by section 53(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section EX 29(3): replaced, on , by section 53(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section EX 29 list of defined terms FIF superannuation interest: inserted, on , by section 53(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section EX 29 list of defined terms foreign superannuation scheme: repealed, on , by section 53(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).