Skip to main content

REGISTERED UNIT TRUSTS RULES(Updated)

THE INCOME TAX (REGISTERED UNIT TRUSTS Collective Investments Schemes) Rules, 2003

Legal Notice No. 82 14 June 2007 Amendment Dated the 14th June 2007 AMOS KIMUNYA Minister for Finance

L.N 215/1990 L.N 40/2003

Citation.

1. These Rules may be cited as the Income Tax (Registered Unit Trusts/Collective Investment Schemes) Rules 2003

Interpretation

2. A unit trust or collective investment scheme shall, upon application being made under rule 3, be registered by the Commissioner for the purpose of section 20 of the Act if he is satisfied that:-
  • (a) the unit trust or collective investment scheme shall undertake portfolio investment in accordance with the policies and guidelines under the Capital Market Act; 
  • (b) the sole purpose of the unit trust or collective investment scheme is to carry on investments on behalf of the unit holders or shareholders; 
  • (c) after six months of commencement of the unit trust or collective investment scheme no units holder or shareholder shall own or be capable of holding more then twelve and one half per cent (121/2%) of the units or shares in any one unit trust of or collective investment scheme ; and 
  • (d) it will, within six months of its commencement and thereafter, maintain at least twenty-five unit holders or shareholders.
3. (1) Application for the registration of a unit trust or collective investment scheme shall be made by the manager or trustee of the unit trust or collective investment scheme to the Commissioner in writing and shall be accompanied by two copies of the trust deed and a copy of the licence issued under the Capital Markets Act,
  (2) The Commissioner shall, as soon as practicable after considering the application, register the unit trust or collective investment scheme and notify the manager or trustee in writing the year of income in respect of which the registration is first to take effect.

4. Where unit holders or shareholders in any unit trust or collective investment scheme are exempt persons under the First Schedule to the Act, the manager or trustee of the unit trust or collective investment scheme shall maintain separate but identifiable account of the funds of such persons.

5. The Income Tax (registered Unit Trusts) Rules, 1990 are revoked.

Previous                 Next