Home > Distributions announced by Managed Investment Trusts
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Distributions announced by Managed Investment Trusts
A Companies Update was released on 20 December 2007 and ASX once again encourages listed trusts to have regard to these matters when announcing distributions.
- The Australian Custodial Services Association (ACSA) has advised ASX that:
Legislative changes which came into effect on 1 July 2007 have impacted the withholding tax arrangements for non-resident investors of managed investment trusts.
- In order for custodians holding units on behalf of non-resident investors to apply an appropriate rate of non-resident withholding tax, trusts should look to release two key pieces of information prior to the distribution payable date:
1. a statement that the trust complies with the legislation and in particular that it is a managed investment trust for the purposes of Sub-division 12-H of the Taxation Administration Act 1953 for the particular year of income; and
2. a statement clearly identifying each of the individual taxation components that collectively total to the distribution rate.
- If a trust does not state compliance to Sub-division 12H on the distribution notice and does not issue any component information, custodians are required to deduct non-resident withholding tax over the entire distribution at a rate of 45%.
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