Document ID: chunk:federal_register_of_legislation:C2008A00032:clause:1_1:p1
Version: federal_register_of_legislation:C2008A00032
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/5)
Character Range: 1496–4296

1  Subdivision 12‑H in Schedule 1
Repeal the Subdivision, substitute:

Subdivision 12‑H—Distributions of managed investment trust income

Guide to Subdivision 12‑H

12‑375  What this Subdivision is about

      A managed investment trust may be required to withhold an amount from a payment of its Australian sourced net income (other than dividends, interest and royalties) if the payment is made to an entity whose address, or place for payment, is outside Australia. If the payment is made to another entity, the managed investment trust is required to make information available to the recipient outlining certain details in relation to the payment.
      If a custodian receives a payment that is covered by that information, it is required to withhold an amount from any related later payment to an entity whose address, or place for payment, is outside Australia. If the later payment is made to another entity, the custodian is required to make information available in relation to that later payment.
      If an entity that is not a custodian receives a payment that is covered by that information, it is required to withhold an amount from that payment if a foreign resident becomes entitled to that payment. If a resident becomes entitled to the payment, the entity must make information available in relation to that payment.
      Where there is an obligation to withhold, the applicable withholding rate is determined by the nature of the country or territory in which the recipient's address, place for payment or residency is located.

Table of sections

Operative provisions

12‑385 Withholding by managed investment trusts
12‑390 Withholding by custodians and other entities
12‑395 Requirement to give notice or make information available
12‑400 Meaning of managed investment trust
12‑405 Meaning of fund payment
12‑410 Entity to whom payment is made
12‑415 Failure to give notice or make information available: administrative penalty
12‑420 Agency rules

Operative provisions

12‑385  Withholding by managed investment trusts

 (1) A trustee of a trust that is a *managed investment trust in relation to an income year that makes a *fund payment in relation to that income year to an entity covered by section 12‑410 must withhold an amount from the payment.

Note 1: An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

Note 2: If the payment is made to a recipient not covered by section 12‑410, the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.

 (2) The amount the trustee must withhold is:

 (3) The rate is:
 (a) if the address or place for payment of the