TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-H - Distributions of withholding MIT income  

Operative provisions

SECTION 12-385   WITHHOLDING BY WITHHOLDING MITs  

12-385(1)  


A trustee of a trust that is a *withholding MIT in relation to an income year that makes a *fund payment in relation to that income year to an entity covered by section 12-410 must withhold an amount from the payment.
Note 1:

An entity may be covered by section 12-410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

Note 2:

If the payment is made to a recipient not covered by section 12-410 , the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12-395 .

12-385(2)  
The amount the trustee must withhold is:


*Fund payment × Rate applicable under subsection (3)

12-385(3)  
The rate is:


(a) if the address or place for payment of the recipient is in an *information exchange country:


(i) 15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

(ii) 10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

(iii) 30% for fund payments, to the extent that they are attributable to *non-concessional MIT income (see section 12-435 ); or


(b) otherwise - 30%.

12-385(4)  
An information exchange country is a foreign country or foreign territory specified in the regulations for the purposes of this section.

12-385(5)  


This section does not apply to an amount paid by a *withholding MIT to the extent that no *managed investment trust withholding tax is payable in respect of the payment or an amount reasonably attributable to the payment.



This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.