Widely-based settlement arrangements for investment schemes and employee benefit arrangements entered into before 30 June 2003

Details of settlement terms

Settlement conditions and disclaimers

The following settlement information is a general guide. For more information, refer to settlement conditions and disclaimers.

These terms have been endorsed by the widely-based settlement panel.

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).

Principal settlement terms

We will agree to terms including both of the following:

applying a shortfall penalty at or reduced to the rate of 10%
remitting general interest charge (GIC) to 4.72% for the period from the due date of the original assessment, until the earlier of 14 days after the issue of an amended assessment (to give effect to settlement) or 31 May 2007.

In return, you will agree to terms, including all of the following:

giving up your right to continue (or begin) to dispute the liability or entitlement for the arrangement - any objection or appeal currently in process will be withdrawn
paying the amended tax debt by the due date or entering into other agreed payment arrangements
not, at any time, claiming or seeking to claim any deductions for losses relating to your participation in the arrangement.

The following factors were considered when determining the terms of settlement:

a settlement term allowing participants a deduction for cash outlaid was not considered appropriate here as little underlying activity occurred
a 10% penalty is considered appropriate as most participants voluntarily disclosed their claims prior to being advised of an audit
a remission of interest on the tax shortfall recognises that these matters are aged and also provides a concession for participants who wish to finalise their dispute.

Participants who received a fee for another investor's scheme participation or who designed prepared, managed or implemented the investment scheme.

Phone us on 1800 177 006 to discuss the settlement options available to you.

Participants who were involved in Oracle 1998, Oracle 1999, TVI or TVA franchise scheme 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) would receive the above terms, including a deduction for cash outlay. This was considered appropriate to reflect the decision in Tolich v Commissioner of Taxation [2007] FCA 1195 and Burrows v FC of T [2007] AATA 1467.

This settlement was available on request to participants who entered into Oracle 1998, Oracle 1999, TVI or TVA franchise scheme and who had a current disputed liability or entitlement under the Code of Settlement Practice or were able to enter into such a dispute after the above decisions.

Sections within Franchise schemes

Last Modified: Monday, 25 February 2013