ATO urges MIS promoters to find test case
The promoters of managed investments schemes need to come up with a test case on the deductibility of investment in both forestry and non-forestry managed investment schemes, according to the Commissioner of Taxation, Michael D’Ascenzo.
If the scheme promoters can come up with the test case, then the Australian Taxation Office (ATO) would ask the Federal Court to progress it on an urgent basis.
D’Ascenzo said that while the ATO might offer to fund a test case on the managed investment schemes, it was up to the promoters of such arrangements to find a case and to commence such proceedings.
He told a Law Council of Australia conference at the weekend that as the matter of managed investment schemes was not free from doubt, it was best if it was clarified by the courts.
“First, however, there needs to be a dispute,” D’Ascenzo said.
“While we can offer to fund such a case, it is up to the promoters of these arrangements to find a case and to commence such proceedings.”
“We have been working closely with industry and affected taxpayers to urgently identify and expedite a test case while allowing transitional relief in the interim,” he said.
“To expedite matters, we intend to seek (with industry consent) two motions in the Federal Court.”
D’Ascenzo said those motions would involve an urgency motion to have a test case resolved quickly and a request for a hearing by the Full Federal Court on the basis of importance and the public interest.
He said that in progressing the matter, promoters could use a private binding ruling application on a real project that would be offered in the 2008-09 financial year as the basis for the test case.
AUTHOR
Mike Taylor
Recommended for you
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
WIth only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
