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Print this pageAustralia Proposes New Entity Tax Legislation
Washington, DC, November 14, 2000 - The Australian government recently announced its decision to propose new legislation taxing "discretionary" trusts as companies, effective July 1, 2001. In reaching the decision, the Australian government decided to not pursue an earlier legislative proposal that would have created a preferential tax regime for Australian funds (called "collective investment vehicles" or "CIVs"). Under the CIV regime, it appeared that U.S. funds would have been precluded from competing in the Australian funds market on a tax-neutral basis. The decision comes as the Australian government contemplates significant changes to its domestic tax rules through its "Review of Business Taxation" project. The Institute submitted a comment letter to the Australian Treasurer on this topic a year ago.
