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Media Release 3416/12/2010

Review of the Tax Arrangements Applying to Collective Investment Vehicles

The Chairman of the Board of Taxation, Mr Dick Warburton AO, today announced the release of a discussion paper on the Board’s review of the tax arrangements applying to collective investment vehicles (CIVs).

This review arises from the report of the Australian Financial Centre Forum   (AFCF) (which was released by the Government in January 2010) which recommended “that the Treasurer request the Board of Taxation to review the scope for providing a broader range of tax flow through collective investment vehicles” (Recommendation 3.3).

On 12 July 2010 the then Assistant Treasurer   and the then Minister for Financial Services, Superannuation and Corporate Law   announced the terms of reference for the review. The Board has been asked to examine and report on the tax treatment of CIVs, having regard to the managed investment trust tax framework and including whether a broader range of tax flow-through CIVs (such as corporate CIVs) should be permitted.

The review should have regard to the following broad principles:

As part of the review, the Board is asked to examine the effectiveness of the special tax treatment accorded under the Venture Capital Limited Partnership regime in a way that recognises its policy objectives.

In making its recommendations, the Board should consider:

The Board was also asked to examine and report on the design of an investment manager regime for investments by foreign residents  managed in Australia.

The recommendations should seek to enhance Australia’s status as a leading regional financial centre and support growth and employment in the Australian managed funds industry while maintaining the integrity of the tax system and revenue neutral or near revenue neutral outcomes.

To facilitate public consultation, the Board has developed the discussion paper.

The Board welcomes submissions on issues raised in the discussion paper and any other matters relevant to the terms of reference.  The closing date for submissions is Monday 28 February 2011.  Submissions may be sent to:

Email: taxboard@treasury.gov.au

Facsimile: (02) 6263 4471

Post:
Review of the tax arrangements applying to collective investment vehicles
The Board of Taxation
c/- The Treasury
Langton Crescent
PARKES ACT 2600

Copies of the Board’s discussion paper are available from www.taxboard.gov.au. Printed versions of the paper are available by email request sent to taxboard@treasury.gov.au.

To assist in the Review process, the Board is planning to conduct consultation meetings in Melbourne and Sydney in February 2011.  To register your interest in attending a consultation meeting, please contact the Board of Taxation Secretariat on (02) 6263 4366 or email taxboard@treasury.gov.au.

Further information on the review is available on the Board of Taxation website, www.taxboard.gov.au.

Contact:

Jorge del Busto
Board of Taxation Secretariat
Telephone (02) 6263 4365
e-mail: taxboard@treasury.gov.au