The Government has released a second exposure draft relating to the implementation of its Investment Manager Regime (IMR), which aims to reduce the uncertainty for foreign managed funds investing in Australia.
A recently enacted US accounting standard for managed funds, referred to as 'FIN 48', requires companies to disclose uncertain tax positions, including for prior years.
In an announcement made on 17 December 2010, the Government acknowledged that "while [the FIN 48 rules] do not directly affect Australian tax outcomes, dealing with the requirements has underlined to foreign investors the uncertainty of Australia's tax rules".
As a result of the uncertainty, foreign funds have been reluctant to invest directly in Australia, often using synthetics to do so.
Minister for Financial Services and Superannuation Bill Shorten said the first stage of the IMR had two objectives.
"Firstly, to alleviate the impact of US accounting standard 'FIN 48'; and secondly to address the situation where a foreign managed fund is taken to have a permanent establishment in Australia because of its use of an Australian adviser, potentially resulting in some or all of the income of the fund being subject to Australian tax," said Shorten.
Submissions to the exposure draft close on 4 April 2012.
Over 90 finalists have been chosen to compete at the 36th annual Fund Manager of the Year Awards.
The asset manager is bolstering its investments in the global energy transition and climate opportunities.
The ethical investment manager has reported record FUM as its growth trajectory continues apace.
The chief investment officers of UniSuper, HESTA, and TelstraSuper have elaborated on opportunities and risks that are top of mind when it comes to illiquid assets like private credit within their portfolios.
Add new comment