Managing MIT structures in light of new Taxpayer Alert

The ATO may review and apply compliance resources in circumstances where an Australian entity that holds passive assets are ‘restructured’, so that it then is able to qualify as a MIT, where there is no clear commercial rationale for such restructure, as detailed by Matt Ervin, Shirley Lam and Tasha Chen.

The Australian Taxation Office (ATO), on 7 March 2025, released its first taxpayer alert (TA) of the 2025 calendar year, TA 2025/1 Managed investment trusts: restructures to access the managed investment trust withholding regime (TA 2025/1), which outlines the Commissioner's concerns regarding restructures that purport to allow investors to access the concessional managed investment trust (MIT) regime. This TA follows on from a raft of reforms since 2016 (including changes in the taxation of...

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Authors: Matt Ervin, Shirley Lam,

Published Date: 12 March 2025