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Edited version of private advice
Authorisation Number: 1052192747972
Date of advice: 15 January 2024
Ruling
Subject: High yield investment scheme - capital loss
Question 1
Did you acquire a CGT asset (as defined in section 108-5 of the Income Tax Assessment Act 1997 (ITAA 1997)) as a result of entering into a high yield investment scheme?
Answer
Yes. You acquired a CGT asset being a contractual right at the time of entering the arrangement.
Question 2
Did a CGT event subsequently happen to that contractual right?
Answer
Yes. CGT event C1 happened in respect of the contractual right when the contractual right came to an end. Section 104-20 of the ITAA 1997 outlines the rules for CGT event C1.
This private ruling applies for the following periods:
1 July 2022 to 30 June 2023
1 July 2023 to 30 June 2024
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
In August 2022, you were contacted via phone by someone purporting to be an investment manager from a trading platform. You believed the platform was legitimate. You made several investments.
You were pressured to make more investments. You became suspicious about the authenticity of the platform.
You reported the fraud to the relevant authorities. You believe there are no more avenues to retrieve your money and all attempts have now been exhausted.
Relevant legislative provisions
Section 102-5 Income Tax Assessment Act 1997
Section 104-20Income Tax Assessment Act 1997
Section 108-5 Income Tax Assessment Act 1997