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Edited version of private advice
Authorisation Number: 1051953704772
Date of advice: 11 March 2022
Ruling
Subject: Loan interest
In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.
The taxpayer sought a ruling in regards to whether, in the event that a trust qualifies as a withholding managed investment trust, the distributions by the trust (attributable to loan interest distributed by a sub-trust) will be "fund payments" for the purposes of section 12-405 of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) that are not attributable to "non-concessional MIT income" for the purpose of section 12-435 of Schedule 1 to the TAA 1953. The Commissioner ruled that the distributions by the trust will be fund payments for the purposes of section 12-405 of Schedule 1 to the TAA 1953, which are not attributable to non-concessional MIT income for the purposes of section 12-435 of Schedule 1 to the TAA 1953 as an exclusion will apply.