Taxation Ruling

TR 2000/8W

Income tax: investment schemes

FOI status:

Notice of Withdrawal

Taxation Ruling TR 2000/8 is withdrawn with effect from 1 July 2008.

1. Taxation Ruling TR 2000/8 set out the Australian Taxation Office (ATO) view on the availability of tax deductions for expenditure incurred by investors entering into investment schemes (as defined in paragraph 17 of the Ruling)..

2. TR 2000/8 continues to apply to investors who entered into investment schemes that commenced to be carried out prior to 1 July 2008.

3. Taxation Ruling TR 2007/8 - Income tax: registered agricultural managed investment schemes, issued on 17 October 2007 to replace TR 2000/8 with effect from 1 July 2008. TR 2007/8 expressed the view that expenses incurred by investors in investment schemes were incurred on capital account..1

4. The view contained in TR 2007/8 was judicially tested in Hance v. FC of T; Hannebery v. FC of T [2008] FCAFC 196; 2008 ATC 20-085. On 19 December 2008, the Full Federal Court handed down its decision and found that the expenses incurred by the applicants pursuant to the scheme were incurred in the course of carrying on a business and had the character of outgoings on revenue account rather than capital account. TR 2000/8 was withdrawn with effect from 11 February 2009.

5. The Notice of Withdrawal for TR 2007/8 stated that the Commissioner would consider whether a new ruling was needed but that applications for product rulings relating to schemes similar to that considered by the Full Federal Court were to be handled in accordance with the Court's decision.

6. The Commissioner issued a Decision Impact Statement on the Full Federal Court decision on 5 February 2009. The Commissioner considers that the decision of the Full Federal Court provides certainty in relation to the application of the law to deductions for contributions to registered agricultural managed investment schemes and no new ruling is required.

Commissioner of Taxation
17 October 2007

Footnotes

[1]
[Omitted].

References

ATO references:
NO 2006/20258

ISSN: 1039-0731
TR 2000/8W history
  Date: Version: Change:
  14 June 2000 Original ruling  
  11 January 2006 Consolidated ruling Addendum
  1 November 2006 Consolidated ruling Addendum
  29 November 2006 Consolidated ruling + note Repeal provision note
  17 October 2007 Withdrawn  
You are here 10 July 2013 Withdrawn Addendum