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Product Ruling

PR 2003/27A - Addendum

Income tax: Rewards Group Sandalwood Project 4

FOI status:

may be released

Addendum

This Addendum amends Product Ruling PR 2003/27 to reflect a change in the Terms Payment Options being offered to 2004 Growers.

PR 2003/27 is amended as follows:

1. Paragraph 14

Insert the following dot points:

•
Additional correspondence received 10 November and 5 December 2003;
•
Supplementary Product Disclosure Statement received 10 November 2003;
•
Rewards Projects Sandalwood Project 4 Terms Agreement Version 2, received 10 November 2003;

2. Paragraph 37

Omit the heading 'Payment of Fees' and replace with 'Payment of Fees - 2003 Growers'

3. Insert new paragraph 37A after paragraph 37

Payment of Fees - 2004 Growers

37A.
Upon signing an Application Form, the Grower acknowledges that the full amount of the Subscription Money is immediately due and payable. However, under the Supplementary Product Disclosure Statement, the Manager is offering Terms Payment Options in respect of the Establishment Fee payable for the Initial Period only (refer to paragraph 34 above). The Grower must choose one of the payment options described below. An application fee of $100 per woodlot applies in respect of the 1, 2, 5 and 7 Year Terms and the 7 Year Interest and Principal options. The Planting Fee of $450 is due and payable in the first financial year following execution of the agreements irrespective of the Terms Payment Option selected.

Cash Option

•
$5,000 per woodlot payable on application.

1 Year Term

•
deposit of $500 per woodlot payable on application; and
•
12 equal monthly instalments of $383.33 per woodlot.

2 Year Term

•
deposit of $500 per woodlot payable on application; and
•
24 equal monthly instalments of $213.33 per woodlot (including fixed interest calculated at 10.5% per annum).

5 Year Term

•
deposit of $500 per woodlot payable on application; and
•
60 equal monthly instalments of $100.99 per woodlot (including fixed interest calculated at 10.5% per annum).

7 Year Term

•
deposit of $500 per woodlot payable on application; and
•
84 equal monthly instalments of $78.85 per woodlot (including fixed interest calculated at 10.5% per annum).

7 Year Interest and Principal Term

•
deposit of $500 per woodlot payable on application;
•
36 equal monthly instalments of $40.25 per woodlot (including fixed interest calculated at 10.5% per annum); and
•
then 48 equal monthly instalments of $117.78 per woodlot (including fixed interest calculated at 10.5% per annum).

4. Paragraph 52

Omit note (iii) and replace with:

(iii)
Interest payable under any of the Terms Payment Options will be deductible when paid.

5. Paragraph 56

Omit note (vii) and replace with:

(vii)
Interest payable under any of the Terms Payment Options will be deductible when paid.

This Addendum applies on and from 14 January 2004.

Commissioner of Taxation
14 January 2004

References

ATO references:
NO 2003/11684

ISSN: 1441-1172

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