Footnotes
Inquiry into mass marketed tax effective schemes and investor protection: Second Report
[1] The Committee specifically excludes employee benefit
arrangements (EBAs) and other tax avoidance schemes including financial
products, such as linked bonds and capital protected products, from its
discussion of mass marketed tax effective schemes.
[2] This concession entitles eligible investors to an
interest reduction from the full general interest charge, currently 11.89 per
cent, to a rate reflecting the time value of money of 4.72 per cent.
[3] The ‘eligibility’ guidelines are outlined in the following
section.
[4] ‘FACTS on “tax effective” investments’, Australian
Taxation Office, Issue Number 2, July 2001.
[5] ATO newsletter, ‘FACTS’, July 2001, p.3.
[6] Originally penalty and interest liabilities would have
been added to this.
[7] ATO newsletter, ‘FACTS’, July 2001, p.3. This taxation
settlement does not affect the loan arrangement between the investor and the
scheme operator. That is, the balance of the investor’s non-recourse loan
remains $20,000 to be paid, according to the original contractual arrangements,
from profits from the scheme.
[8] Although the Committee has recommended full remission of
the interest payable on the tax liability which accrued from the time
deductions were claimed to the time they were disallowed by the ATO, the
question of interest payable on outstanding debt over a repayment period is a
separate matter.
[9] Evidence, p.815.
[10] Evidence, p.800.
[11] Evidence, p.801.
[12] Evidence, p.683.
[13] Mr Brian Dunigan, Additional Information, 26 July 2001,
p.2.
[14] In-camera evidence, 23 August 2001, p.11.
[15] File Note, 30 August 2001.
[16] Evidence, p.825.
[17] File Note, 30 August 2001.
[18] ATO Correspondence, 21 September 2001, p.3.
[19] ATO Correspondence, 21 September 2001, p.3.
[20] ATO, Additional Information, 28 August 2001.