Statute Details
- Title: Income Tax (Concessionary Rate of Tax for Aircraft Investment Manager) (Prescribed Activities) Regulations 2008
- Act Code: ITA1947-S565-2008
- Legislative Type: Subsidiary Legislation (sl)
- Authorising Act: Income Tax Act (Chapter 134), section 43Z
- Enacting Formula / Power: Made under the powers conferred by section 43Z of the Income Tax Act
- Citation: Income Tax (Concessionary Rate of Tax for Aircraft Investment Manager) (Prescribed Activities) Regulations 2008
- Commencement: Deemed to have come into operation on 1 March 2007
- Date Made: 30 October 2008
- Key Provisions:
- Section 1: Citation and commencement
- Section 2: Definitions (approved aircraft investment manager; approved aircraft leasing company)
- Section 3: Prescribed activities for purposes of section 43Z(1)(b)
- Schedule: Prescribed services or activities
- Status: Current version as at 27 March 2026
What Is This Legislation About?
The Income Tax (Concessionary Rate of Tax for Aircraft Investment Manager) (Prescribed Activities) Regulations 2008 (“Aircraft Investment Manager Prescribed Activities Regulations”) are subsidiary legislation made under the Income Tax Act. Their core function is to identify which services or activities may be carried out by an approved aircraft investment manager in order to qualify for the tax regime contemplated by section 43Z of the Income Tax Act.
In plain language, the Regulations operate as a “gatekeeper” for the concessionary tax treatment. Section 43Z of the Income Tax Act provides a framework for a concessionary rate for an approved aircraft investment manager. However, the concession is not open-ended: it depends on whether the manager carries out the prescribed services or activities. This is where the Regulations matter—Section 3 and the Schedule specify the qualifying activities.
Although the Regulations are dated 2008, they are deemed to have come into operation on 1 March 2007. This backdating is legally significant for practitioners dealing with historical tax positions, compliance documentation, and potential disputes about whether certain income was eligible for the concessionary rate during the relevant period.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal citation and the commencement rule. The Regulations are deemed to have come into operation on 1 March 2007. For tax lawyers, this means the prescribed-activities framework may apply to income years or transactions occurring after 1 March 2007, even though the Regulations were made later (30 October 2008). When advising on eligibility, it is therefore important to align the timing of the aircraft investment manager’s activities with the deemed commencement date.
Section 2 (Definitions) defines two key terms used in the Regulations:
- “approved aircraft investment manager” means an aircraft investment manager approved under section 43Z of the Income Tax Act.
- “approved aircraft leasing company” means an aircraft leasing company approved under section 43Y of the Act.
These definitions matter because the prescribed activities in Section 3 are tied to who performs them. In other words, the concessionary regime is not merely about the nature of the services, but also about the status of the provider—only an approved aircraft investment manager can carry out the prescribed services or activities for the purposes of section 43Z(1)(b).
Section 3 (Prescribed activities) is the operative provision. It states that, for the purposes of section 43Z(1)(b) of the Income Tax Act, the prescribed services or activities are those specified in the Schedule and which are carried out by an approved aircraft investment manager.
Practically, Section 3 establishes two cumulative requirements:
- Activity requirement: the services/activities must be among those listed in the Schedule; and
- Person requirement: the services/activities must be carried out by an approved aircraft investment manager.
This structure is common in tax concession regimes: it prevents taxpayers from claiming the concession for income derived from activities that are not within the statutory list, even if the taxpayer is otherwise approved.
The Schedule (Prescribed Services or Activities) is where the substantive content lies. The extract provided shows the heading “Prescribed Services or Activities” but does not reproduce the actual list. For a practitioner, the Schedule is the document that must be consulted to determine whether a particular investment management function—such as structuring, sourcing, managing aircraft-related investments, or related advisory services—falls within the prescribed categories.
Because the Schedule is decisive, legal advice typically requires a fact-specific mapping between (i) the taxpayer’s actual operational activities and (ii) each item in the Schedule. Where the Schedule is drafted with technical or narrow wording, the mapping exercise becomes critical for eligibility and for defending the position in the event of a tax audit.
How Is This Legislation Structured?
The Regulations are structured in a straightforward, practitioner-friendly way:
- Part/Section 1: Citation and commencement (including the backdated deemed commencement on 1 March 2007).
- Section 2: Definitions of the key approved entities.
- Section 3: The operative link between section 43Z(1)(b) of the Income Tax Act and the Schedule, specifying that prescribed services/activities are those in the Schedule and carried out by an approved aircraft investment manager.
- Schedule: The list of “Prescribed Services or Activities” that qualify for the purposes of section 43Z(1)(b).
Notably, the Regulations do not appear to contain detailed procedural rules (such as application, approval conditions, reporting obligations, or penalty provisions) within the extract. Those elements are typically located in the Income Tax Act itself (or in other subsidiary instruments) rather than in these prescribed-activities Regulations. Here, the focus is narrow: defining the qualifying activity set.
Who Does This Legislation Apply To?
The Regulations apply to an aircraft investment manager that has been approved under section 43Z of the Income Tax Act. The approval status is essential: the prescribed activities must be carried out by an approved aircraft investment manager to fall within the scope of section 43Z(1)(b) as implemented by these Regulations.
While the definition of “approved aircraft leasing company” appears in Section 2, the operative provision in Section 3 is directed at services or activities carried out by an approved aircraft investment manager. In practice, aircraft investment managers often interact with aircraft leasing companies (for example, in investment structures involving leasing income or leasing-related assets). However, eligibility under these Regulations turns on the investment manager’s activities and their classification under the Schedule.
Accordingly, the Regulations are relevant to:
- tax advisers and corporate counsel advising aircraft investment managers on concession eligibility;
- compliance teams preparing tax computations and supporting documentation; and
- litigators or dispute managers assessing whether income was correctly treated as concessionary based on the nature of the activities performed.
Why Is This Legislation Important?
These Regulations are important because they translate a broad statutory concession into a specific, enumerated set of qualifying activities. In tax practice, this kind of “prescribed activities” instrument often becomes the decisive factor in determining whether the concession applies. Even where an entity is properly approved, the concession may be denied (or reduced) if the entity’s activities fall outside the Schedule.
From an enforcement perspective, the Regulations provide a clear benchmark for the tax authority. The authority can examine the taxpayer’s business model, contracts, and operational records to determine whether the services performed match the prescribed categories. This reduces ambiguity and supports consistent administration of the concessionary regime.
From a practitioner’s perspective, the Regulations also affect how you structure and document operations. If the Schedule includes only certain types of services (for example, investment management services directly connected to aircraft investments), then ancillary activities—such as general corporate services, unrelated advisory work, or activities performed by third parties—may need to be ring-fenced or separately accounted for. Otherwise, there is a risk that income streams could be challenged as not arising from prescribed activities.
Finally, the deemed commencement date (1 March 2007) can be significant in historical compliance. Where taxpayers took positions between 1 March 2007 and the date the Regulations were made, the backdating may support the concessionary treatment if the activities were within the Schedule and performed by an approved aircraft investment manager. Conversely, it may also increase exposure if the taxpayer’s activities were not within the prescribed list during that period.
Related Legislation
- Income Tax Act (Chapter 134), in particular section 43Z (concessionary rate for aircraft investment managers) and section 43Y (aircraft leasing companies)
- Prescribed Act / Timeline (as referenced in the legislation metadata)
Source Documents
This article provides an overview of the Income Tax (Concessionary Rate of Tax for Aircraft Investment Manager) (Prescribed Activities) Regulations 2008 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.