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  • Agribusiness managed investment schemes

    Managed investment schemes (MIS) are generally mass-marketed arrangements for investment in primary industry.

    Arrangements usually relate to activities such as forestry, agriculture, horticulture and aquaculture and are for a fixed number of years depending on the nature of the activity.

    While fee structures for MIS vary, often the investor pays an upfront fee for initial services and may also pay for ongoing services in later years. The upfront fee is typically a large amount and may be financed by a loan, sometimes offered by the MIS provider or a related entity.

    While many MIS arrangements don't constitute a tax scheme, investors should be careful if the arrangement doesn't have an ATO product ruling confirming the intended tax benefits.

    Even if a ruling has been issued, it's important to be aware that having a product ruling isn't a guarantee of commercial success and that the ATO may withdraw or amend it.

    This could happen if something changes in the way the arrangement is carried out or the arrangement is terminated or wound up early. In this situation, the promised tax benefits may no longer be available.

    See also:

      Last modified: 13 Sep 2016QC 50096