Fed: Investor beware on product rulings, Carmody warns

AAP General News (Australia)
04-26-2000
Fed: Investor beware on product rulings, Carmody warns

Investors have been warned that promised tax benefits would be worthless unless promoters
of tax schemes stuck exactly to the details provided to the Australian Taxation Office.

The ATO issues product rulings to promoters of tax schemes, which guarantee tax benefits
to investors.

But Tax Commissioner MICHAEL CARMODY says product rulings don't guarantee the success
of a scheme, or the honesty of those promoting them.

Mr CARMODY says there's been a dramatic rise in the number of schemes being put forward
for ATO approval.

He says almost 50 product rulings have been issued so far this financial year, four
times last year's number.

However, the commissioner has warned that some promoters are leaving it very late to
get approval before the start of the new financial year.

AAP RTV ss/msk/jn

KEYWORD: TAX RULINGS (CANBERRA)

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