Contents of section 7 (How sub‑funds of CCIVs are taxed)

In force

(1)

Section 7 of the Product Disclosure Statement for the simple sub‑fund product must state, in the form of a warning, that:

(a)

investing in a simple sub‑fund product is likely to have tax consequences; and

(b)

persons are strongly advised to seek professional tax advice.

(2)

Section 7 must also include statements to the following effect:

(a)

CCIVs and sub‑funds do not pay tax on behalf of members;

(b)

members of the sub‑fund are assessed for tax on any income and capital gains generated by the sub‑fund.

(3)

The CCIV may provide additional information about:

(a)

taxation matters relating to the sub‑fund of the CCIV; or

(b)

taxation matters relating to sub‑funds of CCIVs;

by applying, adopting or incorporating a matter in writing.

Note:

For taxation matters relating to sub‑funds of CCIVs, see Subdivision 195‑C of the Income Tax Assessment Act 1997.

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