Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Tag Archive for australia tax

Australian Tax: New Tax Incentive To Drive The Minerals Exploration Industry

Applications open on the 16th of April 2018 for the Junior Minerals Exploration Incentive (JMEI).

Back in September 2017, the government announced it will look to provide a tax incentive for junior exploration companies to encourage investment and risk taking. The Junior Mining Exploration Incentive (JMEI) builds upon the Exploration Development Incentive (EDI) which ceased on the 30th of June 2017.

The Australian Bureau of Statistics released Australia’s mineral exploration statistics for the December 2017 quarter. The report found that overall there continues to be an imbalance between greenfields and brownfields exploration, with 67% of drilling happening in already explored brownfield locations. Read more

IRS changes instructions for Forms 5471 and 8621

Form 5471:

  1. IRS now requires a creation of Refrence ID of the foreign corporation and this must be completed for all years ending on or after December 31, 2012.
  2. According to AICPA – “ The most notable change and one that the AICPA has recently addressed in a comment letter to the IRS, is the constructive ownership exception which was previously available to Category 3 and 4 filers only. The exception has now been extended to all Category 5 filers where ownership in the foreign corporation is solely through application of constructive ownership principles and the U.S. person through whom the U.S. shareholder constructively owns an interest in the foreign corporation files Form 5471 reporting all required information. “
  3. Other changes can be found in “What’s new” section of Form 5471.

Form 8621:

  1. In the filer identification section, a line has been added to request the reference ID number of the PFIC or QEF.
  2. New Part I, Summary of Annual Information was added to reflect the new annual filing requirement of section 1298(f) which was added by section 521 of the Hiring Incentives to Restore Employment Act of 2010. However, this new Part I is not required until the underlying regulations are published. For now, they have been marked as Reserved For Future Use. Form 8621 will be revised when Part I becomes effective.
  3. The elections in Part II of the form have been reordered and the filing requirements for new elections F, G, and H have been modified. Please complete Part II carefully with these changes in mind.
  4. See instructions for all changes very carefully.