About the scheme
The Sampson Vineyard & Winery project, Great Southern Olive Oil project and Zurich project Investment schemes all generally had the following structuring features:
- participants acquired units in the underlying trust
- participants purportedly invested, via the unit trusts, in three different projects Olive Oil, Wine or Investment Projects
- participants paid a fee for accountancy and consultancy services in respect of their unit holding (this fee could be funded in part with a short term loan, and the remainder by a non-recourse loan)
- investors did not repay the non-recourse loan as this was to be paid by the income from the projects.
The reference to Great Southern and Zurich in name of the scheme, does not relate to Great Southern Ltd or Zurich Financial Services Australia Ltd.
Status of this settlement offer: closed
Who did this settlement apply to?
This settlement was available on request to participants who entered into any of these three arrangements and who had a current disputed liability or entitlement with us or were able to enter into such a disputed liability or entitlement.
Phone us on 1800 177 006 to determine whether this settlement is still available for you.
Principal settlement terms
- Participants who were involved in the arrangement as an investor (who did not receive a fee for another investor's scheme participation and were not involved in the design, preparation, management or implementation of an investment scheme).
The settlement terms were endorsed by the widely-based settlement panel due to the factors and principles stated below.
We agreed to terms, including all of the following:
- no deduction for cash outlay was considered appropriate as the funds were never intended to be available to the underlying business
- a reduction of the shortfall penalty to 15% was considered appropriate as participants were misled by their trusted agent who has been prosecuted for his actions with respect to the scheme
- remitting general interest charge (GIC) to nil from 18 April 2002 to 11 April 2003, was considered appropriate due to unreasonable ATO delay
- remitting GIC to 4.72% from the due date of the relevant notice of assessment up to 14 days after the date the amended assessment issues to give effect to settlement was considered appropriate due to the participants' particular circumstances. The participants' agent was the promoter and creator of the scheme who was prosecuted for his actions with respect to these arrangements.
In return, participants agreed to terms, including all of the following:
- giving up the right to continue (or begin) to dispute the liability or entitlement for the arrangement - any objection or appeal currently in process was to be withdrawn
- paying the amended tax debt by the due date or entering into other agreed payment arrangements
- not to claim or seek any deductions, at any time, for losses relating to your participation in the arrangement.
- Participants who received a fee for another investor's scheme participation or who designed, prepared, managed or implemented the investment scheme were required to contact us on 1800 177 006, to discuss the settlement options.
Last Modified: Monday, 25 February 2013