November 11, 1996
TO: INTERNATIONAL COMMITTEE No. 38-96
TAX COMMITTEE No. 33-96
RE: INSTITUTE COMMENTS ON AUSTRALIA’S TAX RULES FOR OFFSHORE
FUNDS
______________________________________________________________________________
As you may know, Australia’s tax laws governing investments in foreign investment funds
("FIFs") create a significant disincentive for most Australian residents to purchase shares in offshore
mutual funds. In the attached letter, the Institute urged the Financial System Inquiry, a government
inquiry into Australia’s financial system, to consider providing an exemption from the FIF rules for
investments in U.S. mutual funds that qualify as regulated investment companies for U.S. federal tax
purposes.
We will keep you informed of developments.
Anne M. Barr
Associate Counsel - Tax
Attachment