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Edited version of private advice
Authorisation Number: 1051646598013
Date of advice: 18 March 2021
Ruling
Subject: Withholding managed investment trust
Question
Will Trust A be a 'withholding MIT' under subsection 12-383(1) of Schedule 1 to the Taxation Administration Act 1953?
Answer
Yes
This ruling applies for the following periods:
1 July 20XX to 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Trust A has 2 unit holders, covered by subsection 275-20(4) of the Income Tax Assessment Act 1997 (ITAA 1997).
Trust A indirectly owns land in Australia.
The trustee of Trust A is a company incorporated in Australia.
Trust A is covered by section 275-15 of the ITAA 1997, and satisfies the licensing requirements in section 275-35 of the ITAA 1997.
Trust A is not registered under section 601EB of the Corporations Act 2001.
Trust A has an Australian investment manager that carries out the relevant investment management activities in Australia.
Reasons for decision
Trust A is a 'managed investment trust' under paragraph 275-10(1)(a) and subsection 275-10(3) of the ITAA 1997. This satisfies paragraph 12-383(1)(a) of Schedule 1 to the TAA 1953.
The investment management activities of Trust A satisfy paragraph 12-383(1)(b) of Schedule 1 to the TAA 1953.
Therefore, Trust A will be a 'withholding MIT' under subsection 12-383(1) of Schedule 1 to the TAA 1953.
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