Offshore voluntary disclosure

Did you know that you could be taxed on the increase in value of your interest in a foreign Individual Savings Account (ISA) or life bond?

The foreign investment fund (FIF) measures are designed to address the problem of Australian residents investing offshore in entities that did not distribute income and let it accumulate offshore.

However, FIF may produce some harsh results in some circumstances such as US ISA or UK personal pension plans. This doesn't just apply to pension plans - any investment in a foreign managed fund will be subject to these rules.

The Commission of Taxation is providing taxpayers with the opportunity to make an offshore voluntary disclosure and obtain a reduced shortfall penalty.

This initiative is only available until 30 June 2010.

For more information, contact Matt Zhou on 02 9957 4033 before it is too late.

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