EDT 0.00% 9.1¢ edt retail trust

edt and us tax returns

  1. 339 Posts.
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    Do you remember the section in the PDS (page 82)about unit holders becoming subject to US tax?

    I would like to be out of this investment before that happens. Any ideas as to whether it is an issue yet?

    PDS Page 82
    Consequently, if following the making of the election, the Trust realises income that is effectively connected with a US trade or business, non-US Unitholders will be considered
    to have recognised income that is effectively connected with a US trade or business. To the extent a Unitholder is considered to have recognised income that is effectively connected with a US trade or business, the Unitholder may be required to file an income tax return with the US Internal Revenue Service and pay US federal income taxes. In addition, the Trust may be required to withhold US federal income taxes on distributions to non-US Unitholders.

    The Trust, the Responsible Entity and the US REITs have agreed to make reasonable efforts to structure their arrangements to minimise the possibility that the Trust will have income that is effectively connected with a US trade or business such that non-US Unitholders would be obliged to fi le a US federal income tax return and pay US federal income taxes.
    Nonetheless, there is a risk that the Trust will realise income that is effectively connected with a US trade or business such that non-US Unitholders may be required to pay US federal income taxes and file US federal income tax returns.
 
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