12 Jul 07 Part IVA and "wash sale" arrangements - TR 2007/D7This draft Taxation Ruling was released on 11 July 2007 for public comment by 24 August 2007. Its full title is "Income tax: application of Part IVA of the ITAA 1936 to 'wash sale' arrangements". In the Ruling, the Commissioner is concerned with arrangements which have the effect of causing a disposition to happen which enables a taxpayer to incur a loss to offset against a gain already derived, or expected to be derived, in certain circumstances. These would be where owing to the manner, substance and timing of the events it may be questioned whether the loss making event is mainly to be explained by reference to the purpose of obtaining a tax benefit from the loss.
As a result of the release of TR 2007/D7, Taxation Ruling TR 94/14 (Income tax: traditional securities) and Income Tax Ruling IT 2643 (Income tax: sale of shares in companies in liquidation, receivership ('wash sales')) have been partially withdrawn with effect from 11 July 2007.
For a copy of TR 2007/D7, go here
For a copy of TR 94/14PW, go here
For a copy of IT 2643W, go here