AUSTRALIA TO REVIEW TREATMENT OF ISLAMIC FINANCE

By Neville D'Cruz

MELBOURNE, May 19 (Bernama) -- The Australian government has asked its
Board of Taxation to review the treatment of Islamic finance in Australia.

"The review will be a comprehensive analysis of Australia's tax laws to
ensure, where possible, they do not inhibit the provision of Islamic finance,
banking and insurance products," Australia's Assistant Treasurer Senator Nick
Sherry said in a statement Wednesday.

"The review is not about creating special treatment, but about creating a
fair and level playing field for Islamic financial products into the Australian
market.

"Our fund management sector also has much to offer the wholesale Islamic
finance sector as such the review will also address any issue on that front," he
said.

The review will examine the tax policy response to the development of
Islamic financial products in Britain, France, South Korea and relevant Asian
jurisdictions.

Sherry said the board would make recommendations to ensure, where
possible, that Islamic financial products had parity of tax treatment with
conventional products.

The board, which must report to Sherry by June next year, must state
if amendments to the tax law are required to be made to the existing tax
framework rather than developing specific provisions directly at Islamic
financial products.

He said Islamic finance was a rapidly growing part of the global
financial system.

"The Islamic finance, banking and insurance market is worth almost A$1
trillion and could reach as much as A$5 trillion," Sherry said.

The Assistant Treasurer also said his recent visit to the Middle East
illustrated "the vibrancy and dynamism" of the Islamic finance sector and there
was no reason why Australia should not address national tax laws that may
inhibit local growth.

-- BERNAMA



Delete & Prev | Delete & Next