See IR461
A FIF does not include term deposits, bonds, debentures, money lent, foreign employment, pensions, qualifying foreign private annuity or rental investments.
Based on the IRDs definition I would tend to think it is a FIF. In fact it would be pretty hard to come to another conclusion, but I guess we don't all think the same way.
See IR461
A FIF does not include term deposits, bonds, debentures, money lent, foreign employment, pensions, qualifying foreign private annuity or rental investments.
An ASX listed company is neither a TD, bond, debenture or any of the other things you list. I am starting to see where the confusion might be coming from.
The definition does include COMPANIES on the ASX which do not meet the exemption criteria.
Maybe you should look at the exemption criteria and see if it needs changing at IRD. I don't have time to check my self but here is a start.
Exemption for ASX-listed Australian companies
The ASX-listed Australian company exemption applies when you own shares in a company that:
-is included on the official ASX list
-is Australian resident and not treated as resident in another country under an agreement between Australia and that other country
-maintains a franking account, and
-offers stock that is not stapled.
Your dividend advice slip should show if your dividend is a franked dividend. This means the dividend has Australian franking credits attached. Note that Australian franking credits cannot be claimed as tax credits in New Zealand.
Pretty much everything getting smashed Crapto down 6% US Markets DOW futures DOWN 400+ >> BUT Gold going up AUD gold up $33oz !! last few hours ..
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No Aaron PMGOLD is not the ticker for the Perth Mint. As mentioned yesterday it is an option to acquire 1/100th ounce of gold from the Perth Mint.
So which of the four FIF categories would that fall in?
a foreign company?
a foreign unit trust?
a foreign superannuation scheme?
an insurer under a foreign life insurance policy.?
Sorry my mistake, I put PMGOLD into the ASB Securities search and Perth Mint came up under that ticker.
An option, in this case a call option would I think generally be considered a financial arrangement (none of the things listed above) and as such would fall under the financial arrangements rules rather the the FIF regime.
This raises a whole lot more questions than I have time to answer.
I tend to agree that it is not FIF. Which is good and bad (if true). Bad because having just got my head around FIF rules, at least to the limited extent necessary for my purposes, I will have to look at financial arrangement rules.
Hopefully there is a big threshold before it kicks in.
Gains on sale of gold bullion of any kind are taxable of course.
From an IRD document Questions We've Been Asked QB17/08
"Gold may also be invested indirectly, for example through investment in a fund that owns commodities or benchmarks its return to commodities, or through other derivatives such as forwards, futures or options. Investments in gold in those or other forms not covered by this QWBA may still give rise to tax implications under s CB 4 or under other tax rules (for example under the financial arrangements rules)."
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Originally Posted by Nor
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