Attribution managed investment trust (AMIT) tax return instructions 2019
About these instructions
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
The Attribution managed investment trust (AMIT) tax return instructions 2019 will help you complete the AMIT tax return for 2019. The instructions and tax return are not available in print or to download as a PDF. These instructions also cover how to complete schedules that trusts may need to attach to their tax return.
For instructions on how to lodge the AMIT tax return, see Lodgment
These instructions will help you complete the Attribution managed investment trust (AMIT) tax return 2019. They are not a guide to income tax law.
When we say you or your business in these instructions, we mean either:
- you as the trustee of the AMIT, or
- you as the registered tax agent responsible for completing the tax return.
References to the AMIT, where applicable, are references to the trustee in their capacity of trustee of the AMIT.
These instructions contain abbreviations for names or technical terms. Each term is spelled out in full the first time it is used. You can also refer to the list of abbreviations.
AMIT Technical Amendments
Treasury Laws Amendment (2018 Measures No. 5) Act 2019 was enacted on 12 March 2019. The amendments clarify the operation of the income tax law applying to AMITs and make a number of modifications.
A new tax system for managed investment trusts
The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 allows an eligible managed investment trust (MIT) to choose to apply the AMIT regime. The choice to apply it and become an AMIT is irrevocable.
The AMIT regime includes the following features:
- AMITs apply an attribution method of taxation in lieu of the present entitlement to income method
- AMITs may carry forward under- and over-attribution amounts into a later year, generally without adverse taxation consequences
- AMITs are deemed to be fixed trusts
- adjustments may be made to decrease or increase the cost base of members' unit holdings in an AMIT to eliminate double taxation that may otherwise arise
- AMITs (and other MITs) are subject to an arm’s length rule that aims to ensure that related entities undertake transactions between one another in a manner that reflects commercial dealings.
Features of this return
The Attribution Managed Investment Trust (AMIT) Tax Return 2019 is tailored to the specific aspects of the AMIT regime for MITs. Some features of this return include:
- electronic-only lodgment via Standard Business Reporting (SBR)
- streamlined information requirements compared to the Trust tax return
- reduced statement of distribution requirements; specifically, the trustee is only required to complete information on foreign resident members in respect of which the trust is not a withholding MIT and the trustee is liable to pay an amount
- automated assessment process, including where the trustee is liable to pay an amount
- a comprehensive notice of assessment (NOA) issued where a trustee is liable to pay an amount; specifically, the NOA will provide details of trustee assessment in respect of amounts of tax the trustee is required to pay on behalf of foreign resident members (for AMITs that are not withholding MITs), as well as amounts of tax the trustee is required to pay in its own right.
Ceasing to be an AMIT
A trust that was an AMIT for an income year but is not eligible to be an AMIT in a later income year ceases to be an AMIT. In that case, the trust may need to lodge a trust or other tax return for that later income year.
If you are not eligible to be an AMIT for the income year, do not lodge an AMIT tax return. You should instead lodge:
- a Trust tax return for the income year, or
- a Company tax return if Division 6C applies to you for the income year.
Last modified: 30 May 2019QC 58632