broker report , page-3

Thanks Zwu. I have read the ruling and, please correct me if I am wrong, my reading is that the win for ATO relates more to the fact that Mr Lenzo claimed several years of deductions up front and that it was somehow proven that the investment was done purely to minimise tax.

For interest and unrelated to the ruling, I attach below an excerpt from an article which appeared in the Australian on 16th April.


"He says investors can take advantage of bargains such as listed notes offered by agribusiness managers Great Southern (GTPGA and GTPGB) and Timbercorp (TIMPB).

Those companies are in a dispute with the Australian Taxation Office, which proposes to take away the tax deductibility for investors in their non-forestry projects, and there is to be a test case in the Federal Court."

"The market has assumed that the ATO has won, and have slaughtered the stocks," Lewis says. "No one appears to believe that the test case will come up positive for the companies. But it just might. But the market's reaction means that even if the companies lost the test case, it wouldn't hurt their share prices any more."