Deemed rate of return for taxing foreign investment fund interests set for 2006-07 income year

The Minister of Revenue announced on 23 July 2007 that the deemed rate of return for taxing foreign investment fund interests has been set at 10.27% for the 2006-07 income year. This rate increased from the 9.82% rate, which applied in the 2005-06 year, as a result of rising interest rates. The deemed rate of return is calculated as an average of the 5-year government stock rate plus a margin of 4%. It is one of the methods by which a resident taxpayer may calculate the annual t…