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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.