anz opes backlash...when will the pain end

  1. 13,344 Posts.
    It makes me wonder if ANZ were prepared to be involved with such a dodgy scheme such as Opes, what else are they and other banks of this league involved with? When will the pain end? Now possibly the ATO wants a slice of this rotten cake in the form of CGT! Or has this already been scrapped as a no go?

    And I thought ANZ was a breed of conservative bankers, how wrong one can be. Can't say they didn't do their homework though, they moved very swiftly and quietly on this so as not to alert anyone....or did they?

    ANZ's Opes backlash
    Michael West
    April 3, 2008
    Page 1 of 2
    source: http://business.smh.com.au/anzs-opes-backlash/20080403-23hs.html

    In part:
    Begin quote>
    When a banker and a client are making money together in the same security, the temptation to relax credit policies is high.

    One matter which has yet escaped attention is tax.

    Will Opes clients be left with no shares but still cop the capital gains tax liability and a loan which cannot be repaid nor offset for tax purposes?

    If the Tax Office were to deem that a shareholder has ''lent'' his shares when in fact they have been ''traded'' then a disposal may have occurred, hence a capital gains transaction.

    As for the disposal, say ANZ sells a security at 80 cents which it had taken at $1, would the CGT be triggered at $1?

    That would be a last cruel blow for battered Opes clients.
 
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