The Australian Taxation Office (ATO) issued, on 11 July 2007, Draft Taxation Ruling TR 2007/D7 which deals with wash sales. Draft Rulings are issued for public comment and represent the preliminary views of the ATO on the application of tax law to a specific issue.
The Draft Ruling covers arrangements involving a taxpayer incurring a loss from a disposal of assets which will be used to offset earlier gain, where the broader effect of the arrangement is that eco…