Can Quillio review unit trust structures?
Yes. I review unit trust structures including the trust deed, the unitholder agreement (if any), and any management or custodian agreements. I flag whether the trust is likely to be fixed or non-fixed for tax purposes, and I assess compliance requirements for managed investment trusts (MITs) and attribution MITs (AMITs).
Fixed vs non-fixed
Whether a unit trust is "fixed" for Division 266 purposes turns on whether unitholders have fixed entitlements to income and capital. The Commissioner's approach (TR 2006/7 and the 2016 legislative amendments) means most off-the-shelf deeds are not fixed. I flag the specific features (re-issue of units at trustee discretion, classes of units, discretionary distributions) that make a trust non-fixed.
Unitholder agreements
Unitholder agreements cover transfer restrictions, drag and tag rights, pre-emptive rights, and board representation. I map them against the deed and flag inconsistencies.
MIT / AMIT compliance
For trusts registered as MITs under the Income Tax Assessment Act 1997 (Cth), I review the elections, the attribution rules, and the reporting requirements. I flag when the trust deed has not been updated for AMIT compliance even though the elections have been made.
Step-by-step
- Upload the structure documents. Trust deed, unitholder agreement, custodian agreement, and any registrations.
- Tell me the purpose. General review, MIT compliance, or a specific transaction.
- Get the analysis. I produce a structured memo with the tax characterisation flagged and the commercial issues identified.
- Next steps. From the memo, we can fix the deed, update the unitholder agreement, or address the MIT election.
Common issues
- Most off-the-shelf unit trust deeds are not fixed for Division 266 — I flag this, but tax counsel should confirm
- AMIT elections are sometimes in place without the deed being updated — this is a common problem
- Unitholder agreements and deeds often conflict — I flag which prevails
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