Q: Does the Taxable Income of an investor in a Real Estate Investment Trust (REIT) that is a Qualifying Investment Fund include unrealised gains of the REIT?
A: No, the Taxable Income of an investor in a REIT that is a Qualifying Investment Fund is the investor’s share of the net income available for distribution in the financial statements of the Qualifying Investment Fund . This does not include unrealised gains of the fund as unrealised gains cannot be distributed to investors.
Q: For a REIT to qualify as a tax-exempt Qualifying Investment Fund , at least 20% of its shares must be floated on a Recognised Stock Exchange and the REIT and its Related Parties or Connected Persons must not subscribe to or purchase any of the floated shares . Does the requirement for the REIT, Related Parties or Connected Persons not to subscribe to or purchase any of the floated shares refer to just the 20% shares that are required to be floated or all the floated shares?
A: The requirement only applies to the 20% of shares that must be ...