13 Jan 10 Interest deduction generators involving sham mortgage arrangements - TA 2009/20
In a media release issued on 22 December 2009, the Commissioner, Michael D’Ascenzo, announced the release of Taxpayer Alert TA 2009/20 entitled "Interest deduction generators involving promoter controlled companies". The Taxpayer Alert warns people about sham arrangements promoted as "mortgage management plans" which promise to help home owners repay their home loan sooner and claim tax deductions to which they are not entitled.
"These arrangements are essentially about people refinancing their home loan and establishing what appears to be an investment loan to fund the purchase of shares in a bogus company," Mr D’Ascenzo said.
For a copy of the ATO media release, No 2009/67, 22 December 2009, go here
For a copy of TA 2009/20, go here