Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 555

             (1)  The third step is to determine, in relation to the taxpayer in respect of the relevant period, the foreign investment fund amount in respect of the taxpayer's interests in the group.

             (2)  The foreign investment fund amount is the amount worked out using the formula:

For the purposes of this subsection:

"Opening value" means the value of the interests in the group on the relevant day.

"Deemed rate of return" , in relation to the relevant period, means:

                     (a)  if there is only one base interest rate in relation to the year of income in which the relevant period ends--that rate; or

                     (b)  if there are 2 or more base interest rates in relation to that year of income--the weighted average of those rates;

increased, in either case, by 4 percentage points.

"Number of days held" means the number of days in the relevant period in which the taxpayer had the interests in the group.