This fact sheet sets out the information and documentation you need to apply for a managed investment trust (MIT) withholding tax refund or for payment of an outstanding MIT withholding tax liability.
The current MIT withholding and liability regime was introduced by Tax Laws Amendment (Election Commitments No 1) Act 2008 (No. 32 of 2008) which came into effect from 1 July 2008. Other related new provisions in the tax legislation were introduced by the Income Tax (Managed Investment Trust Withholding Tax) Act 2008 and the Income Tax (Managed Investment Trust Transitional) Act 2008.
The withholding provisions are contained in Subdivision 12-H of Schedule 1 to the Taxation Administration Act 1953.
The crediting provision is section 18-32 of Schedule 1 to the Taxation Administration Act 1953.
The liability provisions are contained in Subdivision 840-M of the Income Tax Assessment Act 1997.
The transitional provisions contained in the Income Tax (Transitional Provisions) Act 1997 and other consequential amendments to tax legislation are also noted.
For more information you can also refer to the following fact sheet:
Withholding arrangements for managed fund distributions to foreign residents
In general, amounts withheld under the MIT withholding tax regime will match the ultimate beneficiary's underlying MIT withholding tax liability. However, mismatches may occur (for example, the address of the recipient of a payment, such as a global custodian, is in a different country to the country of residence of the ultimate beneficiary). As a result the ultimate beneficiary is required to:
- apply for a partial refund because the amount of MIT withholding tax paid to the ATO is greater than their liability, or
- make a top-up payment of MIT withholding tax because the amount previously paid to the ATO is less than their liability.
Last Modified: Wednesday, 2 May 2012