Government Announcements
Managed investment trusts
18.05.2010
In response to the Board of Taxation’s report into the tax arrangements applying to managed investment trusts (MITs), the Government is to put in place a new tax system for MITs, to commence on 1 July 2011.
The key features of the proposed new MIT tax system are:
● the provision of an elective “attribution” system of taxation to replace the present entitlement system;
● the attribution system will provide that investors will be taxed only on the income that the trustee allocates to them on a fair and reasonable basis, consistent with their entitlements under the trust deed or the trust’s constituent documents;
● establishing the ability to deal with “over or under” distributions within a five per cent cap so that trusts are not required to reissue statements and investors are not required to revisit tax returns;
● removing double taxation; and
● abolishing Div 6B ITAA 1936 (corporate unit trusts).
For the text of the Assistant Treasurer’s media release click here.
