CERTAINTY TESTS

Tests For Assessing Certainty of Performance of Tax Saving Investments

TAX DEDUCTIBILITY

Does it have a positive Private Tax Ruling from the Australian Taxation Office?

LEGALITY

Does it have a Prospectus approved by the Australian Securities Commission?

Does it have an equivalent Information Memorandum giving full disclosure of all matters relevant to a prospective investor?

COMMERCIAL VIABILITY

Does the investment make commercial sense without the tax benefits?

and

Are there competent and experienced management and business structures in place to carry the investment through to a profitable completion?

If you answered YES for all of these questions, the Tax Saving Investment should give you certainty of performance. If you answered NO to any question, you should question closely the performance ability of the Tax Saving Investment.

If you do not pass the "CERTAINTY TESTS", you should see your accountant or tax adviser as soon as possible. MAKE SURE a Private Tax Ruling is lodged with the Australian Taxation office before you lodge your tax return.