ATO Media Release 2008/2
Acting Tax Commissioner Bruce Quigley today warned people to be cautious about claiming deductions for losses incurred under certain stapled security arrangements.
In these arrangements the company issuing the securities suggests that the investor may claim deductions for losses in certain circumstances.
These circumstances include the assignment, transfer or surrender of the note, or conversion or disposal of the stapled security.
Mr Quigley said the Tax Office is concerned that these losses may not be allowable and will be releasing a public ruling on the arrangement shortly.
“We are acting now to warn people who may be involved of our concerns as soon as possible.
“People should seek independent tax advice before claiming deductions for any losses that they incur under these arrangements,” Mr Quigley said.
A taxpayer alert TA 2008/1 was issued today and is available from the Tax Office website www.ato.gov.au
Article by Christie Lewis
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