Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (53 of 2016)

Schedule 3   Withholding MITs and fund payments

Income Tax Assessment Act 1997

2   After subsection 840-805(4C)

Insert:

Modification - AMITs

(4D) If the *managed investment trust mentioned in paragraph (2)(a), (3)(b) or (4)(b) is an *AMIT for the income year mentioned in that paragraph:

(a) if paragraph (2)(a) applies - disregard the phrase "(but not a beneficiary in the capacity of a trustee of another trust)" in paragraph (2)(c); or

(b) if paragraph (3)(b) applies - disregard the phrase "(but not a beneficiary in the capacity of a trustee of another trust)" in paragraph (3)(c); or

(c) if paragraph (4)(b) applies - disregard paragraph (4)(c).

(4E) If:

(a) a trustee of a trust is liable to pay income tax on a fund payment part (a taxed part ) because of the operation of subsection (4D); and

(b) you are a beneficiary of the trust and are presently entitled to a share of the income or capital of the trust;

then, in working out for the purposes of paragraph (4)(b) whether all or part of that share is reasonably attributable to a payment that is a *fund payment, disregard the taxed part.