Tax Office ruling on investment schemes TR 2000/8 Source: ATO Assist 'Newsroom' 15th June 2000 This material is reproduced by permission but does not purport to be the official or authorised version. The accuracy of the content is not guaranteed. Please rely only on the authorised document. Tax Commissioner Michael Carmody announced today the release of an income tax ruling on 'tax shelters' which confirms and re-affirms Tax Office views on whether contributions to investment schemes are tax deductible. TR 2000/8 is titled 'Investment Schemes'. The Ruling was first issued as Draft Ruling, TR 97/D17 on afforestation schemes. The title of the finalised Ruling has been changed to reflect the fact that it covers issues found in a wide variety of schemes including various primary production schemes, film and franchise schemes. It is available at www.ato.gov.au. "This Ruling sets out ATO views on a range of tax laws that affect many mass marketed tax shelter arrangements which will ensure that the taxation consequences are clearly understood", Mr Carmody said. "In particular, it shows the sorts of financing methods an investor might become involved with, which we believe are ineffective in producing the tax benefits claimed to be associated with the schemes. "This Ruling will not affect schemes covered by specific Product Rulings. Investors in those schemes can continue to rely on the Product Ruling that applies to their scheme. The proviso is of course that the promoter has carried out the scheme exactly as described in the Product Ruling, subject to any subsequent changes in the law." Mr Carmody explained. The Ruling looks at in particular: when an investor is carrying on a business whether expenditure is of a capital nature use of non or limited recourse loans and round-robin financing inflation of first year fees operation of the general anti-avoidance provisions. "The main impact of the Ruling is in clearly describing when we think certain aggressive tax planning techniques involved with such a scheme will attract the operation of the general anti-avoidance provisions." Mr Carmody said. CANBERRA Further details: Australian Taxation Office - Assist Phone: 13 24 78 Web site: www.ato.gov.au Submit an Article to the Newsroom DISCLAIMER: Supercorp Australia Pty Ltd and its officers and employees, disclaim all and any liability and responsibility to any person for any act or consequence or omission in respect of the above information. No person should rely on the contents of this information without obtaining advice from a qualified professional. Copyright © 1999-2002 - Supercorp Australia Pty Ltd - ABN 92 063 307 700