I read somewhere, (I'd have to find it). The term "share washing" is American, and coined in the 1850's.
And from one of the articles I've listed, previous post.
What the ATO is saying is that if the sale and repurchase was undertaken with the main purpose of securing the offsetting paper loss, then the ATO will apply Part IV A of the Income Tax Assessment Act 1936 and cancel the tax benefit sought.
But I do understand your thoughts. Their pushing it now.
