Private ruling: High yield investment scheme - capital loss
Date of advice: 17 January 2024
Published: 26 February 2024
Date scheme commenced: 1 January 2020

Ruling: Q1: Did you acquire a CGT asset (as defined in section 108-5 of the Income Tax Assessment Act 1997 (ITAA 1997)) as a result of entering into a high yield investment scheme? | A1: Yes. You acquired a CGT asset being a contractual right at the time of entering the arrangement. | Q2: Did a CGT event subsequently happen to that contractual right? | A2: Yes. CGT event C1 happened in respect of the contractual right when the contractual right came to an end. Section 104-20 of the ITAA 1997 outlines the rules for CGT event C1. This private ruling applies for the following period: 1 July 20XX to 30 June 20XX The scheme commenced on: 1 January 2020

Relevant facts and circumstances: You invested your funds into various share trading platforms. Later, you discovered that the share trading platforms were not legitimate or genuine. You expected to make a profit from the arrangement based on the representations made by the other parties to the arrangement. You later found that the investment was not genuine.

Relevant legislative provisions: Section 102-5 Income Tax Assessment Act 1997 | Section 104-20 Income Tax Assessment Act 1997 | Section 108-5 Income Tax Assessment Act 1997