On 21 December 2006 the Government announced that, with effect from 1 July 2007, investors in forestry MIS would be entitled to immediate upfront deductibility for all expenditure provided that at least 70% of the expenditure is expenditure directly related to developing forestry ("direct forestry expenditure"): see 2007 TAXVINE No 1 (6) (19 January 2007). The deduction would be provided by way of a separate statutory provision. On 27 March 2007, the Government released exposure draft legislation for the proposed statutory deduction provision.
On 21 December 2006 the Government also announced that it was supportive in-principle of removing impediments to secondary markets for forestry MIS interests. The Government is still considering the issue.
Further integrity measures may be included in the legislation.
Interested parties are invited to provide written submissions by close of business on Friday 13 April 2007.
For a copy of the Exposure Draft, go here