Document ID: chunk:federal_register_of_legislation:C2008A00032:clause:1_2:p1
Version: federal_register_of_legislation:C2008A00032
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/4)
Character Range: 21313–24161

2  After Division 830
Insert:

Division 840—Withholding taxes

Table of Subdivisions

 Guide to Division 840
840‑M Managed investment trust withholding tax

Guide to Division 840

840‑1  What this Division is about

      This Division provides the rules to determine if you are liable to pay income tax in respect of certain Australian sourced income paid to you, or which you are entitled to receive.
      The rules are relevant for foreign residents and certain other entities.
      The income tax payable is a withholding tax. The associated withholding obligations are in the Taxation Administration Act 1953.
      Amounts on which there is a liability to pay withholding tax are non‑assessable non‑exempt income.

Subdivision 840‑M—Managed investment trust withholding tax

Guide to Subdivision 840‑M

840‑800  What this Subdivision is about

      If you are a foreign resident you may be liable to pay income tax on certain amounts of Australian sourced net income (other than dividends, interest and royalties) of a managed investment trust that are either paid to you or to which you become entitled.
      A beneficiary of a trust in the capacity of a trustee of another trust will not be liable to income tax on these amounts.
      Amounts on which there is a liability to pay withholding tax are non‑assessable non‑exempt income.

Table of sections

Operative provisions

840‑805 Liability for managed investment trust withholding tax
840‑810 When managed investment trust withholding tax is payable
840‑815 Certain income is non‑assessable non‑exempt income
840‑820 Agency rules

Operative provisions

840‑805  Liability for managed investment trust withholding tax

Liability

 (1) You are liable to pay income tax at the rate declared by the Parliament on the amount identified in subsection (2), (3) or (4) as the fund payment part if that subsection applies to you.

Note 1: The tax, which is called managed investment trust withholding tax, is imposed by the Income Tax (Managed Investment Trust Withholding Tax) Act 2008 and the rate of the tax is set out in that Act.

Note 2: See Subdivision 12‑H in Schedule 1 to the Taxation Administration Act 1953 for provisions dealing with withholding from fund payments.

Note 3: This subsection does not apply to residents of information exchange countries for the first income year starting on or after the first 1 July after the day on which the Tax Laws Amendment (Election Commitments No. 1) Act 2008 receives the Royal Assent. Subdivision 840‑M of the Income Tax (Transitional Provisions) Act 1997 applies instead.

Payments from managed investment trusts

 (2) This subsection applies to you if:
 (a) you are paid an amount from a trust that is a *managed investment trust in relation to an income year, or an amount is applied or dealt with as you direct by such a