• Outcomes in detail

    Your claim to the Common Fund, that arose when your invested money was mixed with monies invested in other schemes, is a CGT asset.

    A CGT event occurs when you receive your interim distribution out of the Common Fund.

    If your interim distribution is more than your cost base before the interim distribution is paid then a capital gain arises. Otherwise, your cost base is reduced by the amount of your interim distribution, but not below zero.

    A CGT event occurs when you receive your final distribution out of the Common Fund, constituting the expiration of the CGT asset.

    Your capital proceeds amount is the sum of any final amounts distributed to you out of the Common Fund.

    Your cost base includes the sum of your total investment in the schemes, described as the member’s total contributions (‘A’) in the court direction made on 19 November 2012, excluding the amount of your investment in YVG Direct and reduced by the amount of your interim distribution.

    If your capital proceeds as a result of your final distribution out of the Common Fund are more than your cost base just before the final distribution is paid, there is a capital gain for that CGT asset for the year in which the CGT event occurs.

    If your capital proceeds as a result of your final distribution out of the Common Fund are less than the cost base for your investment just before this time, a capital loss will result for that CGT asset for the year in which the CGT asset expired.

    Where the scheme promoter advised you that you made a gain, but you never received that gain or the gain was purportedly reinvested, consistent with the Courts’ findings, we do not accept that gain was made. Any such gain has no consequences for income tax purposes, either in the year it was reported, or in the year you receive your final distribution from the receiver. You may seek an amendment of your return to exclude that unpaid gain from your taxable income. You will need to substantiate that you did not receive that gain. Documents that may substantiate that you did not receive that gain include a notice from the Receivers of rejection of your claim against the Common Fund, or a letter from LGH Holdings Pty Ltd advising of the roll-over of a capital gain into a new project.

    The following information explains how to correct mistakes in previous year tax returns.

    Further information

    For more information about correcting mistakes, refer to Guide to correcting mistakes and disputing decisions.

    End of further information
      Last modified: 12 Jun 2013QC 35067