"Yesterday the federal minister announced the ATO had reconsidered its interpretation of current tax laws in relation to non-forestry agribusiness managed investment schemes (MIS).
The ATO is preparing a draft Taxation Ruling which will apply to non-forestry MIS arrangements entered into after 30 June 2007. "
Actually I stated earlier that the ruling wouldn't apply to MIS projects prior to July 1.
However it seems that the new ATO ruling will apply to ARRANGEMENTS after 30 June 2007.
I think that means that if you had contract with some workers prior to 30 June 2007 you could continue to use them as a tax deduction.
Well that is interesting... I wonder how many contracts would be covered and how much are they worth? Also how long are these contracts for? Like could they be for say 5 years or 10 years? If companies are valued on the basis of earning going forward then such information may be significant in our valuations.
I understand TIM makes money from offering managerial services. I wonder who will bare the brunt of this new tax legislation. It may born out by the growers. I would say that growers are still going to have to employ TIM and pay fees. What it will mean for TIM is that a possible source of revenue has gone. Few growers will want to get into growing olives and almonds now. It looks like it will be pretty tough on them. TIM will probably focus on selling forest plantations and managing them I suppose.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
