The following Product Rulings were released by the ATO on Wed 14.2.2018:

  • PR 2018/1 – Tax consequences of investing in the HSBC UCITS Common Contractual Fund. This ruling provides that the relationship between the fund manager and unit holders constitutes a trust and that the share of the net income of the trust to which unit holders (as beneficiaries) are presently entitled is assessable under s 97(1) of the ITAA 1936. The fund is also a fiscally transparent entity for the purposes of Australia’s DTAs with the US, Japan and Holland. Date of effect: 1 July 2017;
  • PR 2018/2 – Tax consequences of investing in Macquarie Equity Lever Instalment Receipts. This ruling focuses on the extent to which interest incurred under the Macquarie Equity Lever facility is deductible. Date of effect: 29 September 2017; and
  • PR 2018/3 – Tax consequences of investing in equities using the Macquarie Geared Equities Investment plus (2018 Product Brochure). This ruling focuses on the application of the capital protected borrowing rules in Div 247 of the ITAA 1997 and the general deduction provision (s 8-1). Date of effect: 13 February 2018. It replaces Product Ruling PR 2016/7 (Tax consequences of investing in equities using the Macquarie Geared Equities Investment plus – 2013 Product Brochure), which was withdrawn on and with effect from Wed 14.2.2018.

[LTN 30, 14/2/18; FJM; Tax Month February 2018]

 

Study questions (answers available)

  1. Are these the first 3 product rulings for 2018?
  2. Is the first one confirming a trust relationship and the amount to which the unit holders are presently entitled?
  3. Is the second one about the HSBC UCITS Common Contractual Fund?
  4. Is the third one about the effect on the capital protected loan provisions in Div 247 of the ITAA97, on the Macquarie Geared Equities Investment plus (2013 Product Brochure)?

 

 

[answers:1.yes(1,2,3);2.yes;3.no(Macquarie);4.no(updated2018Brochure)]

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