QLD: Investors could sue banks over capital protected loans

AAP General News (Australia)
08-09-1999
QLD: Investors could sue banks over capital protected loans

A leading litigation lawyer says investors caught in a recent Australian Tax Office ruling
against deductions on capital-protected equity loan packages can take legal action.

CHARLES WILSON of the firm Attwood Marshall says investors stung by the ATO's decision
could sue the bank or investment adviser who put them in the scheme.

However, he says they should have an effective strategy in place before August 31.

The ATO has stated that tax avoidance rules will apply to taxpayers who have been using
capital protected loan products to purchase shares.

It wants a proportion of tax deductions claimed under the scheme to be disallowed
retrospectively.

Mr WILSON says some investors may choose to pay retrospective tax and the reduced penalties
offered by the Tax Office up to the end of the month.

But he says others may choose to wait for the Tax Office ruling to be tested in court, and
then sue the bank or investment adviser who put them into the capital-protected loan scheme.

AAP RTV ch/sd/wz/jn

KEYWORD: LOANS (GOLD COAST)

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