Published on 01 Aug 16
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 and related measures have made extensive amendments to the managed investment trust (MIT) taxation rules, and have introduced a new attribution managed investment trust (AMIT) regime. A trust can elect to enter the AMIT regime provided it satisfies certain criteria. An election is voluntary but, once made, is irrevocable. Entry into the AMIT regime confers certain taxation benefits.
Trustees will need to consider whether the advantages of being an AMIT will make the election worthwhile, as against the effort required to secure entry, such as amending the trust’s constitution. Other amendments to the MIT taxation rules are, however, mandatory. This article first looks at the practical implications of the amendments to the current MIT regime and then discusses the pros and cons of entering into the new AMIT regime by comparing the new AMIT regime to the alternative.
Gary is a Partner in KPMG's tax division with over 17 years of experience, including three years in the national office of the Australian Taxation Office. Gary specialises in providing income tax planning and structuring advice to the financial services and power and utilities industries on major transactions such as mergers and acquisitions, IPOs, capital raisings and restructures.
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