AC is correct , have seen it many times . Put very basically ,...

AC is correct , have seen it many times .

Put very basically , the individual has a sizable tax bill ..and possibly not even the money to pay . They take out a sizable loan with the MIS company , buy a product and wipe out the tax owed , maybe even get a refund .

Now yes ..they still have the debt , but they can pay it off and the project is going to make money ..Right ?? ..this is the theory . Now what if the project looks like not producing a return ..How you going to get the money from them ? the project is the security ..

I would imagine however that the Tax office would be well and truly after them however . But this is the problem with the unsecured loans .

I should declare I have a very small parcel of TIM shares in a SMSF . I have quite a few MIS products , but no debt against the projects , none of these are with TIM .

I was one of the silly ones who expected a reasonable return from the projects ( GTP ) , this seems to look more unlikely by the day .