New tax system for managed investment trusts
26 October 2010
The Assistant Treasurer and Minister for Financial Services and Superannuation has released a discussion paper on the Implementation of the New Tax System for Managed Investment Trust, which aims to introduce a system, as follows:
- "an elective 'attribution' system of taxation under which 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 'under' or 'over' distributions within a five per cent cap so that trusts are not required to reissue distribution statements and investors are not required to revisit tax returns; and
- removing double taxation that can arise in certain circumstances."
The reforms, if passed, are anticipated to take effect from 1 July 2011.
If you have any comments on the Bill, please contact our Principal Policy Solicitor, Matt Dunn, on firstname.lastname@example.org by 8 November 2010.