Draft Taxation Determination

TD 2009/D16W - Notice of Withdrawal

Income tax: will a deduction remain allowable under section 8-1 of the Income Tax Assessment Act 1997 where a CGT event happens in relation to a taxpayer's interest in a section 82KZMG of the Income Tax Assessment Act 1936 forestry managed investment scheme within 4 years after the end of the income year in which the taxpayer first incurred expenditure under the agreement?

• Please note that the PDF version is the authorised version of this withdrawal notice.

Notice of Withdrawal

Draft Taxation Determination TD 2009/D16 is withdrawn with effect from today.

1. Draft Taxation Determination TD 2009/D16 explains that a deduction previously allowed under section 8-1 of the Income Tax Assessment Act 1997 would be disallowed by section 82KZMGA of the Income Tax Assessment Act 1936 where a CGT event occurs within 4 years after the end of the income year in which the taxpayer first incurred expenditure.

2. TD 2009/D16 contained a note that stated:

The Assistant Treasurer made an announcement on 21 October 2009 in media release No. 074 that: The Rudd Government will amend [the] four-year holding period rule for forestry MIS to ensure that it cannot be failed for reasons genuinely outside an investor's control.

3. On 3 June 2010 the Tax Laws Amendments (2010 Measures No. 1) Act 2010 was enacted, amending the law to protect the deductions of investors in forestry managed investment schemes where the four-year holding period rules are failed for reasons genuinely outside the investor's control.

4. As the amended legislation is clear about when a deduction will remain allowable where a CGT event occurs within the four-year holding period, this Determination is no longer considered necessary and is withdrawn.

Commissioner of Taxation
14 July 2010

References

ATO references:
NO 1-1SFRU6X

Related Rulings/Determinations:

TD 2009/D16