The Chairman of the Board of Taxation, Mr Chris Jordan AO, today welcomed the announcement by the Minister for Financial Services & Superannuation that the Government will implement an investment manager regime (IMR) for foreign managed funds broadly in line with that recommended by the Board in its report on the review of an IMR as it relates to foreign managed funds.
The Board noted when conducting the review that there were perceived tax uncertainties with regard to certain cross border finance sector activities. This was consistent with findings made by the Australian Financial Centre Forum Australia in their report Australia as a financial centre – Building on our strengths .
The Board therefore made 12 recommendations in relation to the introduction of an IMR for foreign managed funds. In framing its recommendations the Board consulted with industry and tax practitioners.
The Board believes that the introduction of an IMR for foreign managed funds should assist in removing tax related impediments to international investment into Australia by foreign managed funds and impediments to the use of Australian intermediaries by these funds.
The Chairman expressed his thanks to those who contributed to the review, including the individuals and organisations that participated in the Board’s consultation forums and made submissions, members of the Board’s working group chaired by Mr John Emerson AM, members of the expert panel and the consultant who assisted the working group, officers of the Treasury and the Australian Taxation Office and the staff of the Board’s Secretariat.
The report is available from the Board’s website.
The Chairman also noted that the Board is continuing with its broader review of the tax arrangements applying to collective investment vehicles. The Board expects to finalise this review by 31 December 2011.