Draft Taxation Determination
TD 2009/D15W - Notice of Withdrawal
Income tax: will a deduction remain allowable under subsection 394-10(1) of the Income Tax Assessment Act 1997 where a CGT event happens in relation to a participant's forestry interest in a forestry managed investment scheme within 4 years after the end of the income year in which the participant first pays an amount under the scheme (subsection 394-10(5) of that Act)?
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Please note that the PDF version is the authorised version of this withdrawal notice.
Notice of Withdrawal
Draft Taxation Determination TD 2009/D15 is withdrawn with effect from today.
1. Draft Taxation Determination TD 2009/D15 explains that a previously allowed deduction would not remain allowable under subsection 394-10(1) of the Income Tax Assessment Act 1997 (ITAA 1997) where a CGT event happens within 4 years after the end of the income year in which the participant first pays an amount under the scheme.
2. TD 2009/D15 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a CGT event occurs within the four-year holding period, this Determination is no longer considered necessary and is withdrawn.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