Law Companion Ruling LCR 2015/14
Date of effect: 5 May 2016

What this ruling is about: 1. This Ruling explains when an entity, established and wholly-owned by an Australian government agency (an 'Australian Government owned entity'), meets the conditions in paragraph 275-20(4)(i) of the Income Tax Assessment Act 1997 (ITAA 1997) [1] for the purpose of the managed investment trust (MIT) widely-held tests.


Ruling: 1. This Ruling explains when an entity, established and wholly-owned by an Australian government agency (an 'Australian Government owned entity'), meets the conditions in paragraph 275-20(4)(i) of the Income Tax Assessment Act 1997 (ITAA 1997) [1] for the purpose of the managed investment trust (MIT) widely-held tests.


Appendix: 3. To qualify as a MIT under paragraph 275-10(1)(a), the trust must satisfy the relevant widely held test in paragraph 275-10(3)(e). As part of satisfying the relevant test, special provisions apply to entities that are on the safe harbour list of entities in subsection 275-20(4). 4. One of the entities on this list is an 'Australian Government owned entity' (see paragraph 275-20(4)(i), which is in the same terms as former paragraph 12-402(3)(h) of Schedule 1 to the TAA 1953). This Ruling sets out the Commissioner's interpretation of paragraph 275-20(4)(i). It also applies to former paragraph 12-402(3)(h) of Schedule 1 to the TAA 1953. | Meaning of Australian Government owned entity: 5. An entity is an Australian Government owned entity where: 6. The scope of this second requirement is broad: Commissioner of Taxation 5 May 2016


What this Ruling is about | This Ruling describes how the Commissioner applies the law as amended by the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016. | If you rely on this Ruling in good faith, you will not have to pay any underpaid tax, penalties or interest in respect of matters it covers if it does not correctly state how a relevant provision applies to you. | Date of effect: 2. The predecessor of paragraph 275-20(4)(i) is paragraph 12-402(3)(h) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953). This Ruling is a public ruling, effective retrospectively for those who rely on it in good faith from the date of effect of paragraph 12-402(3)(h).


Legislative references: ITAA 1997 ITAA 1997 275-10(1)(a) ITAA 1997 275-10(3)(e) ITAA 1997 275-20(4) ITAA 1997 275-20(4)(i) ITAA 1997 995-1 TAA 1953 TAA 1953 Sch 1 12-402(3)(h) Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016