Timbercorp and Great Southern Investments - ATO Releases Rulings

The ATO has recently published its much anticipated Draft Taxation Determinations (TD 2009/D9 and D10) on whether tax deductions already claimed, by grower-investors who invested in Timbercorp and Great Southern non-forestry schemes, will stand.

The view adopted by the ATO indicates that investors will not lose the benefit of the tax deductions already claimed merely as a consequence of the responsible entity being replaced in the insolvency process, provided the scheme continues on foot with the intention of the product ruling.

In addition, the ATO’s rulings state that tax deductions will not be lost where the scheme is discontinued and the assets sold, due to circumstances beyond the investor’s control.