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Overseas transactions/thin capitalisation

Last updated 24 March 2021

You must complete this section (and, if required, the International dealings schedule) on an aggregated basis for the trust as a whole, including where you have elected to treat each class of the trust as a separate AMIT ('elective multi-class AMITs').

The information requested in this section (and, if required, the International dealings schedule) is for information gathering purposes only. The information you provide is not indicative of any interpretive position of the trustee or the Commissioner regarding the application of the tax laws to elective multi-class AMITs. Trustees or advisers of elective multi-class AMITs may contact the ATO for guidance on the application of these laws to their particular circumstances.

If you answer Yes to either of the following two questions, or if you had overseas interest or royalty expenses, you must complete an International dealings schedule 2016.

Was the aggregate amount of your transactions or dealings with international related parties (including the value of any property or service transferred or the balance of any loans) greater than $2 million?

Indicate 'yes' or 'no' in the space provided, as appropriate to your circumstances.

For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole. If you answer Yes, you must complete an International dealings schedule 2016.

Did the thin capitalisation provisions affect you?

Indicate 'yes' or 'no' in the space provided, as appropriate to your circumstances.

For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole. If you answer Yes, you must complete an International dealings schedule 2016.

Interest expenses overseas

Enter the amount of interest expenses the trust paid to non-residents.

You must generally withhold an amount of tax (withholding tax) from interest paid or payable to non-residents, and from interest derived by a resident through an overseas branch. You must remit these withheld amounts to us. You cannot claim a deduction for the interest expenses unless you have remitted relevant withholding tax to the Commissioner.

Do not include amounts of actual or deemed payments to members that are an AMIT DIR payment.

For elective multi-class AMITs, complete this question on an aggregated basis for the trust as a whole.

See also:

Royalty expenses overseas

Enter the amount of royalty expenses paid to non-residents.

You must generally withhold an amount of tax (withholding tax) from royalties paid or payable to non-residents and from royalties derived by a resident through an overseas branch. You must remit this amount to us. You cannot claim a deduction for the royalty expenses unless you have remitted any relevant withholding tax to the Commissioner.

Do not include amounts of actual or deemed payments to members that are an AMIT DIR payment.

For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole.

For more information, see:

Record keeping

Keep a record of:

  • names and addresses of recipients
  • amounts paid
  • the nature of the benefit derived, for example, a copy of the royalty agreement
  • details of tax withheld where applicable, and the date it was remitted to us.

See also:

Transactions with specified countries

The list of specified countries is in Appendix 1 of the International dealings schedule instructions 2016.

Did you send any funds or property to, or receive any funds or property from, any of the specified countries?

This includes sending or receiving funds or property indirectly, through another entity or country.

Answer Yes or No as appropriate.

Do you have the ability to control the disposition of any funds, property, investments, or any other assets located in any of the specified countries?

This includes:

  • funds or assets located elsewhere, but controlled or managed from one of the countries listed, and
  • where you have an expectation you are able to control the disposition of the funds or assets, or you have the capacity to control the disposition indirectly, for example, through associates.

Answer Yes or No as appropriate.

Key financial information

Enter values for the relevant items as shown in the financial statements of the AMIT as at 30 June 2016, or for SAPs, the end of the AMIT's financial year.

All current assets

Enter all current assets of the trust including cash on hand, short-term bills receivable, inventories and trade debtors.

Total assets

Enter all of the trust assets, including fixed, tangible and intangible assets, and all current assets.

All current liabilities

Enter the total obligations payable by the trust within the coming year.

Total liabilities

Enter all of the trust liabilities, including other creditors and deferred liabilities such as loans secured by mortgage and long-term loans.

Total accounting profit or loss of AMIT

Enter the total accounting profit or loss as recorded on the AMIT's profit and loss statement for the income year.

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