About this scheme
The Scotch whisky project is a venture where participants purport to be in the business of marketing and selling whisky. The main features of the venture are:
- to enter the participants completed an application form, Management Agreement and a Finance Agreement and made a cash contribution of 25% of the initial cost
- under the particular financial arrangements adopted, the only funds that were available initially to the Manager to undertake the services required arose from the 25% cash contribution made by the participants
- participants claimed tax deductions for management, production, commissions, storage and insurance expenditures (initial cost) and also possibly have claimed deductions for borrowing costs, interest, legal fees and commissions on the basis that they were carrying on a business.
Status of this settlement offer: current
Who did this settlement apply to?
This settlement was available on request to participants who entered into the Scotch whiskey project and who had a current disputed liability or entitlement under the Code of Settlement Practice or were able to enter into such a dispute.
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:
- applying a shortfall penalty at or reduced to the rate of 20% or 25% depending on the participant's circumstances, was appropriate and consistent with other similar arrangements, and
- remitting GIC to 4.72% from the date of the original assessment to 1 March 2005, was appropriate due to delays in court proceedings by the Federal Court that were beyond the taxpayer's control.
In return, you agreed to terms, including:
- 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to dispute the liability or entitlement for the arrangement - any objection or appeal currently in process was to be withdrawn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, and
- 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 are required to contact us.
Phone us on 1800 177 006, to discuss the settlement options available to you.
Last Modified: Monday, 25 February 2013