16 Jan 08 Certain stapled security arrangements under review - TA 2008/1In a media release issued on 14 January 2008, the Acting Tax Commissioner, Bruce Quigley, warned people to be cautious about claiming deductions for losses incurred under certain stapled security arrangements. Mr Quigley announced the release of Taxpayer Alert TA 2008/1 entitled "Certain stapled securities involving notes and preference shares".
In the arrangements the subject of the Taxpayer Alert, the company issuing the securities suggests that the investor may claim deductions for losses in certain circumstances. These circumstances include the assignment, transfer or surrender of the note, or conversion or disposal of the stapled security. Mr Quigley said the ATO is concerned that these losses may not be allowable and will be releasing a public ruling on the arrangement shortly.
For a copy of the ATO media release No 2008/2, 14 January 2008, go here
For a copy of TA 2008/1, go here