Foreign Investment Funds (FIF) Tax

AAA

DEFINITION of 'Foreign Investment Funds (FIF) Tax '

A tariff imposed on Australian residents by their government on asset value gains from offshore holdings. The FIF tax was implemented in 1992 to prevent citizens from deferring the payment of Australian tax on investments made outside of the country. Investments that can fall within the definition of FIF funds include personal retirement funds, such as American IRAs and Canadian RRSPs, as well as life insurance wrappers, which are often sold by overseas advisors.

INVESTOPEDIA EXPLAINS 'Foreign Investment Funds (FIF) Tax '

The FIF tax is as controversial as it is complicated, with a variety of exceptions and loopholes. In its 2009 Federal Budget, the Australian government attempted to address these problems by announcing its intent to repeal and replace the foreign investment fund (FIF) provisions with a more specific rule.

RELATED TERMS
  1. Kazakhstan National Fund

    The Kazakhstan National Fund is a sovereign wealth fund for the ...
  2. Unrealized Gain

    A profit that exists on paper, resulting from any type of investment. ...
  3. Paper Profit (Paper Loss)

    Unrealized capital gain (or capital loss) in an investment. It ...
  4. Taxable Gain

    A profit on the sale of an asset that is subject to taxation. ...
  5. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  6. Realized Gain

    A gain resulting from selling an asset at a price higher than ...
Related Articles
  1. Taxing Times For Divorced Parents
    Taxes

    Taxing Times For Divorced Parents

  2. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

  3. Iraqi Dinar: Can Comparables Guide Investment?
    Fundamental Analysis

    Iraqi Dinar: Can Comparables Guide Investment?

  4. 5 Smart Money Strategies From Around ...
    Savings

    5 Smart Money Strategies From Around ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center