asic, page-6

If there was a fictitional company called Cyclone which had a similar story line and the investments were pooled ASX shares. If those shares all suffered sudden sharp falls in one day and went into a trading halt for months...never to relist again...the Cyclone investors might be non the wiser and also couldnt have been given a margin call under such dramatic unusual circumstances.
Later...
Cyclone is liquidited and the investors with margin loans loose homes etc.because the stock doesnt cover the debt.

The bankers would 'take' the stocks that had margin loans over them...and claim the tax losses...wouldnt they?

So if the bank later compensated the Cyclone investors couldnt they actually be using the tax rightoff ?? perhaps claimed for their loss.

This is a fictional story that explains what my vivid imagination with little insight or skills in this field has comeup with. Just a novice investor tapping out some thoughts for consideration, if ever such a situation could happen?

I think you/investors/regulators etc have to know what the
loosing investments were and how they are eventually dealt with.