1 Is the Entity in its capacity as Responsible Entity (RE) of theScheme an 'entity' which carries on an enterprise for Goods and Services Tax (GST) purposes?
Yes Question 2 Does the Entity in its capacity as RE of the Scheme make reduced credit acquisitions pursuant to Division 70 of the A New Tax System Goods and Services Tax (Act) 1999 (GST Act) and Division 70 of Part 4.2 of the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations) when, in its corporate capacity, it provides RE management and administration services to the Scheme? Answer Yes Question 3 If the answer to Issue 2 is affirmative, is the Entity in its capacity as RE of the Scheme entitled to reduced input tax credits (RITCs) for the acquisition of those RE management and administration services? Answer Yes
Background The Commissioner received an application from the Entity for a private binding ruling regarding their GST obligations when acting as Responsible entity (RE) for a Scheme. The structure of the Scheme is as follows: • The Scheme is a managed investment scheme under the Corporations Act and it is not a unit trust. It allows a client investor to have a separately managed account ( SMA ) that contains a portfolio of investments ( Portfolio ) beneficially owned by the investor and managed by the entity [1] , as RE of the Scheme. Each Portfolio is aligned to a Scheme Model Portfolio selected by the investor. • Investments held within the Scheme include listed securities and units in managed funds collectively referred to as 'securities' as well a