Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The first step in the procedure is to work out the foreign investment fund amount in relation to the taxpayer in respect of the relevant period.
(2) This is done as follows:
(a) first, determine the cash surrender value of the taxpayer's interest at the end of the period;
(b) secondly, add the amount or value of each distribution (if any) in respect of the taxpayer's interest in the FLP that was made by the FLP to the taxpayer during the period;
(c) thirdly, if the taxpayer disposed of any interest in the FLP during the period, add:
(i) the amount or value of each distribution (if any) in respect of that interest made by the FLP to the taxpayer during the period; and
(ii) the amount or value of any consideration received or receivable by the taxpayer in respect of the disposal;
(d) fourthly, if the taxpayer had an interest in the FLP on the day immediately before the first day of the period, deduct:
(i) if subparagraph (ii) does not apply--the cash surrender value of the interest on that day; or
(ii) if the deemed rate of return method was applied, in respect of the taxpayer's interest in the FLP, in respect of the notional accounting period immediately before the relevant period--the value, determined under Subdivision E in accordance with that method, of the interest on that day;
(e) fifthly, if the taxpayer contributed to the interest in the FLP during the period, deduct the amount or value of the consideration paid or given by the taxpayer in respect of the contribution.
(3) Each amount resulting from the application of one of the paragraphs of subsection (2) is to be expressed in the currency used in determining the cash surrender value referred to in paragraph (2)(a).