AMIT trustee taxation and penalties
Under the new tax system, the trustee of an AMIT may be liable to pay tax or administrative penalties, or both, in certain circumstances.
Trustee taxation
The trustee of an AMIT will be liable to pay tax when:
- the amount of the determined member component of a particular character that relates to assessable income falls short of the member component of that character
- the amount of the determined member component of a particular character that relates to a tax offset exceeds the member component of that character
- the sum of the determined member components of a particular character that relate to assessable income, exempt income or non-assessable non-exempt income attributed to members is less than the determined trust component of that character
- the trustee has a trust component deficit of a character relating to a tax offset (other than a foreign income tax offset)
- unders of a particular character that relate to assessable income are not properly carried forward
- overs of a particular character that relate to a tax offset are not properly carried forward
- the Commissioner determines that the trustee of a managed investment trust derived non-arm’s length income.
See also:
Administrative penalties
The trustee of an AMIT will be liable to pay an administrative penalty where:
- the trust has an under or an over for the base year which resulted from the intentional or reckless disregard of the law by the trustee
- the trustee fails to give AMIT Member Annual Statements (AMMA statements) to AMIT members by the required time
- the trustee enters into a scheme to derive non-arm’s length income
- the trustee fails to make certain information available to AMIT members for an income year.