Summary

Part of a package of four bills to establish a new tax system for certain managed investment trusts, the bill amends the: Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to establish the new class of attribution managed investment trusts (AMIT); and enable the Commissioner of Taxation to determine an amount of non-arm’s length income in relation to a managed investment trust (MIT); Income Tax Assessment Act 1997 to provide that a member of an AMIT will make a capital gain or capital loss when a capital gains tax event happens to their membership interests; Income Tax Assessment Act 1936, Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to provide that fund payment withholding provisions apply when a withholding MIT makes a fund payment to another entity that has a place of payment or address outside Australia; Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to exclude certain superannuation funds and exempt entities from the application of the 20 per cent tracing rule for public trading trusts; Income Tax Assessment Act 1936 to repeal the corporate unit trust rules; and Taxation Administration Act 1953 to extend the list of entities qualifying as eligible investors for the purpose of the widely held requirements. Also amends 13 Acts to make consequential amendments.