Excluded Trades

2017-11-21 13:02:40

 

Even when we were kids, it was always fascinating to plot who's in and who's out and the new ESIC rules are no exclusion.

Right now we advisors are waiting on baited breath for the ATO to advise on what trades are excluded by regulation from the definition of an ESIC. Yes, that's right, you could pass all the tests and still find that the ATO have deemed your calling as ineligible.

We've no authority on this at the time of writing however we're going to use that void in advisory to take a guess on who misses out;
- Property Developers
- Stock, shares, land and financial product dealers
- Renting / lease businesses
- Legal and accounting firms
- Ship building
- Hotels, Nursing homes or similar
- Electricity generators
- Royalty/licence fee earners 
- Service providers for the above
- More?

We are not sure if the rules will become retrospective or if early adaptors will be considered acceptable, however I'd safely assume an exclusion is an exclusion (even if it's advised after the money changes hands).

Could some other area's come up? Certainly, so we'd add mining, steel, forestry, faming and others depending on the politics behind the exclusion process.

Guessing is free, but getting it wrong could be very expensive so we can only advise that you apply to the ATO for a private ruling if your concerned about the outcome of your investment/share allotment.

Regards,

Tom

NB: See our advisor listing for help with an ATO ruling

 

Published By: Tom