29 Jan 14 ATO clarification about managed investment trust withholding tax
The ATO says that ATO Interpretive Decision (ATOID) 2013/63 clarifies the withholding rate and income year that must be referenced, by non-custodians with a different income year to the managed investment trust (MIT).
An Australian resident trustee who withholds from a payment made to a foreign resident beneficiary, that is attributable to a MIT fund payment, must work out the withholding amount using:
- s 12-390(6)(a) of Schedule 1 to the Taxation Administration Act 1953
- the income year of the managed investment trust to which the fund payment relates.