Home | Log in | Join Now! | Blog | Contact    Subscribe to the InvestEd Forum feed (new threads) via RSS
InvestEd :: Wealth Education for Australian Investors

Notices

dividend payment - what is CFI?

 
LinkBack Thread Tools
Old 12-09-2007, 09:46 AM   #1
Member
 
Posts: 30
Join Date: Aug 2007
Location: Canberra
dividend payment - what is CFI?

So, i've worked out what DRP is (Dividend Reinvestment Plan)

but what is CFI ? for example
32.5C FRANKED @ 30% 32.5C CFI

i tried the glossary but couldn't find anything.
I could find a reference for it of colonial first state, but i don't see how it's relevant to the dividend payment for LEI ?
TheCamel is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-09-2007, 09:59 AM   #2
Member
 
Posts: 3,296
Join Date: Aug 2005
Location: NSW
Quote:
Originally Posted by TheCamel View Post
So, i've worked out what DRP is (Dividend Reinvestment Plan)

but what is CFI ? for example
32.5C FRANKED @ 30% 32.5C CFI

i tried the glossary but couldn't find anything.
I could find a reference for it of colonial first state, but i don't see how it's relevant to the dividend payment for LEI ?
Conduit foreign income
Tropo is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-09-2007, 01:22 PM   #3
Member
 
Posts: 30
Join Date: Aug 2007
Location: Canberra
ok.. so.. i still don't quite understand it.. does it mean that, if i'm a resident for tax purposes, it's exempt ?
or the reverse ?
TheCamel is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-09-2007, 02:18 PM   #4
Member
 
Posts: 3,296
Join Date: Aug 2005
Location: NSW
Quote:
Originally Posted by TheCamel View Post
ok.. so.. i still don't quite understand it.. does it mean that, if i'm a resident for tax purposes, it's exempt ?
or the reverse ?
Talk to your accountant !!

"Disclosure of Conduit Foreign Income components for dividend / distribution payments
On 14 December 2005 the Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (TLA) came into effect. The TLA introduced new Conduit Foreign Income (FI) Rules that replaced the former foreign dividend account rules.

Broadly, foreign income not otherwise taxable in Australia that an Australian corporate tax entity distributes to non-residents as dividend / distribution payments may be subject to the exemption. Under the new measures, an Australian corporate tax entity (ACTE) may declare a certain amount of its unfranked dividends to be CFI. That CFI is then not subject to Australian withholding tax if subsequently paid to a non-resident.

ASX has in recent months received a number of requests from investor representatives and service providers highlighting the importance of disclosing the CFI component of a dividend or distribution payment. This then allows those groups that are non-residents, or providing services to non-residents, to pass through the full dividend amount without deducting withholding tax.

This information item is intended to highlight the existence of the CFI for dividend declaration purposes - and the importance of clearly identifying any amounts that are CFI to both local and overseas shareholders and the market generally."
Tropo is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT +10. The time now is 11:06 PM.

Copyright © 2006 Investor Education Pty Ltd (ACN 114 677 226)
Site by Hampel Group