A managed investment trust in relation to an income year is an attribution managed investment trust (or AMIT) for the income year if certain criteria are satisfied. In particular, for the trust to be an AMIT, the interests of the members of the trust need to be clearly defined at all times during which the trust is in existence in the income year (see Subdivision   276 - A).

An AMIT for an income year is treated as a fixed trust. A member of the AMIT in respect of the income year is treated as having a vested and indefeasible interest in a share of the income and capital of the AMIT throughout the income year (see Subdivision   276 - B).

Amounts related to income and tax offsets of an AMIT, determined by the trustee to be of a particular tax character, are attributed to members, generally retaining that tax character (see Subdivision   276 - C).

Underestimates and overestimates of amounts at the trust level are carried forward and dealt with in later years. This is done on a character - by - character basis. An underestimate in an income year of a particular character results in an under of that character. An overestimate results in an over of that character. Unders and overs arise, and are dealt with, in the income year in which they are discovered (see Subdivision   276 - F).

The trustee of an AMIT is liable to pay income tax on certain amounts reflecting under - attribution of income or over - attribution of tax offsets (see Subdivision   276 - G).

Special rules apply to a trust that ceases to be an AMIT (see Subdivision   276 - K).