Peter Dutton, the Revenue Minister, announced in late 2006 that investors in agricultural managed investment schemes would no longer be allowed tax breaks. Dutton said the change, to take effect from 1 July 2008, was due to a reinterpretation of the tax laws by the Australian Taxation Office that investments in such schemes are of a capital nature and therefore cannot be deducted. A number of the major companies in the sector, including Timbercorp and Macquarie Bank, have combined to present a test case against the ATO's ruling in the Federal Court.
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