| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1013008706486
Date of advice: 6 May 2016
Ruling
Subject: Managed investment trust
Question 1
Will The Trust be a managed investment trust (MIT) as defined in subsection 12-400(1) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) from the income year commencing 1 July 2016?
Answer
Yes.
This ruling applies for the following periods:
Year ending 30 June 2017 to Year ending 30 June 2020
The scheme commences on:
Income year commencing 1 July 2016
Relevant facts and circumstances
1. The Trust is an Australian resident unit trust settled by a Constitution.
2. The Trustee of The Trust (The Trustee) will only issue units in The Trust to wholesale clients as defined in section 761G of the Corporations Act 2001.
3. There are two unit holders in The Trust.
4. The Trustee is an Australian resident company.
5. The Trustee currently holds an Australian Financial Services Licence (AFSL).
6. The Trust invests in units in several unit trusts and those trusts invest in properties that generate rental income.
7. The Trustee appointed an investment manager (The Investment Manager) to carry out the investment management activities.
8. The Investment Manager is an Australian resident company.
Relevant legislative provisions
Income Tax Assessment Act 1936 (ITAA 1936) Division 6C
Taxation Administration Act 1953 (TAA 1953) Schedule 1, subsection 12-400(1)
Reasons for decision
The Trust satisfies the definition of a managed investment trust under subsection 12-400(1) of Schedule 1 to the TAA 1953.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
