Tax Laws Amendment (Election Commitments No. 1) Act 2008 (Cth)

Tax Laws Amendment (Election Commitments No. 1) Act 2008

No. 32, 2008

An Act to amend the law relating to taxation, and for related purposes

Contents 1 Short title 2 Commencement 3 Schedule(s)

Schedule 1—Distributions of managed investment trust income to foreign residents

Part 1—Amendment of the Taxation Administration Act 1953

Part 2—Amendment of the Income Tax Assessment Act 1997

Part 3—Consequential amendments Income Tax Act 1986 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Taxation Administration Act 1953

Part 4—Application

Schedule 2—Prime Minister's Literary Awards Income Tax Assessment Act 1997

Tax Laws Amendment (Election Commitments No. 1) Act 2008

No. 32, 2008

An Act to amend the law relating to taxation, and for related purposes

[Assented to 23 June 2008]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (Election Commitments No. 1) Act 2008.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Distributions of managed investment trust income to foreign residents

Part 1—Amendment of the Taxation Administration Act 1953

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.