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FOS Transfer Tax Credits to Banks in lieu of ATO

Posted by on in Reserve Bank of Australia
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In the FOS process of compensation, it appears FOS credit the bank with any (if any) of the borrower's "negative geared" previously enjoyed tax benefits during the time of the problem loan period ("the period").

The FOS position pertaining to ATO 'offsets' ('credits') clearly purports to apply ATO offset benefits to the banks to determine the borrowers overall appropriate "compensation package".The FOS asserts that the banks are entitled to quote; "rent received from leasing the property and any tax deduction received for an investment property"

It appears, that the banks have enjoyed an FOS directed "unjust enrichment" in the form of an inappropriate tax offset benefit to their overall incumbent liability to the borrower by disgorging &/or transferring any of the borrower's tax offset benefits obtained during the period by way of the borrower  "negative gearing" the problem property.
Simply put, it's incumbent upon the applicant upon receipt of any bank interest (etc) "reimbursement" (vis a vis tax neutral refunds) to then make an appropriate ATO "tax adjustment" thru the independent advice of their accountant. By handing back retrospectively and/or to adjust any prior enjoyed tax offset benefit relating to the respective tax file years, as that tax 'offset' benefit is no longer applicable in the event interest in it's entirety is refunded to the borrower by the bank; the same bank interest that ultimately generated the original ATO "tax offset" in the first place.
The FOS is ostensibly NOT putting the  ATO back into a position AS IF THE CREDIT HAD NEVER BEEN GRANTED, but alternatively it appears that the FOS is electing to UNJUSTLY ENRICH THE BANK to the detriment of the Australian taxpayer by way of the ATO.
You're aware of the Senators displeasure referring to BANKWEST misappropriating the Gov. GST portion of liquidated "new unit &/or house" settlement funds where $millions were being misdirected (unlawfully) to the banks coffers, which such practice is apparently prevalent throughout banking industry, however this issue has only recently surfaced before the Senate Enquiry into Post GFC Banking Industry.
It also appears that the FOS are directing any prior "tax advantage" hitherto enjoyed by the FOS Applicant to the bank, in lieu of advising the FOS Applicant to make appropriate "personal ATO tax adjustments"; regardless, the bank and/or the FOS have no business improperly interfering by effectively "re-distributing" ATO tax credit benefits amongst the 36+ banks, tax credit benefits that ought to have been adjusted in favour of the ATO, save general appropriate comment to the borrower.
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  • doyla66
    doyla66 Thursday, 30 August 2012

    Send that to the senators

  • doyla66
    doyla66 Thursday, 30 August 2012

    you used to be able to have your client get his accountant to obtain a form 221D and that meant the client would get his tax relief in his wage packet each week and NOW, instead of waiting till the end of the financial year for his rebate.

  • doyla66
    doyla66 Thursday, 30 August 2012

    So many twists and turns,how on earth do you all keep track of what goes on,it's beyond me.
    This whole debacle has been a real eye opener.It's opened a pandora's box full of lies,deceit and cheating.
    I am just so glad that we have some sane,honest and truly good hearted people in this world.
    These corporations ought to be paying hefty penalties and be punished it is just so WRONG!!!!!!!
    SUPADAVE your leading the way,be brave hold your head high you have done absolutely nothing illegal and should be left in peace,my thoughts and prayers are with you and your family,Good Luck.

  • doyla66
    doyla66 Thursday, 30 August 2012

    Overdue being sent to Senate

    I second Blackedout's comment...Your post is overdue being sent to the Senate. Some on the Senate panel need all the ammo to succeed with the drive for a Royal Commission. Great post by the way.

  • doyla66
    doyla66 Friday, 31 August 2012

    I "third" it, Andy!
    Sounds highly dodgy! Why give the banks the money which should be attended to in a Tax Adjustment and possibly impacts on BAS adjustments as well?
    Are the banks doubling as tax agents as well?

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