Investors taxed as direct holders on securitisation trust income; unpaid income deemed credited at year-end; statements required
Income distributed by a securitisation trust is taxable in the hands of the investor as if the investor had directly held the underlying investments; amounts paid or credited by the trust are treated in the same nature and proportion as they were in the trust. Unpaid income for a year is deemed credited to investors' accounts on the last day of that year in their entitlement proportion. The trust and the payer must file prescribed statements with investors and tax authorities. Income once taxed on accrual is not taxed again when actually paid. Definitions for investor, securities, securitised debt instruments, securitisation trust and security receipts are prescribed.
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