The scaremonger continues his strategy, page-11

1.

Misleading Tax Evasion vs Legal Tax Strategy

“Sell to a family member or unrelated entity to realise a loss but keep ‘exposure’.”

Why it’s stupid:

This borders on tax avoidance or evasion if the “different entity” or “family member” doesn’t represent a genuine arm’s-length transaction. ATO has specific rules (Part IVA anti-avoidance provisions) and wash-sale provisions under scrutiny since 2022–2023 that target exactly this kind of “loss harvesting while maintaining ownership”.

• ❌ Selling to yourself via another entity to harvest losses without changing actual control is likely non-compliant.
• ❗Even if temporarily valid, it may be retrospectively disallowed under audit.

2.

“Sell to your SMSF” – Also Dumb

“Sell them into your SMSF and take the tax loss on your personal account.”

Why it’s stupid:

That’s a non-arm’s-length transaction unless done on-market and documented at market value. The ATO is vigilant about SMSFs transacting with related parties, particularly under Non-Arm’s Length Income (NALI) and NALE (Expenses) provisions.

• If not compliant, the entire gain in SMSF could be taxed at 45%, not 15% or 0%.
• Also violates SISA (Superannuation Industry Supervision Act) rules on self-dealing and in-house asset limits.

3.

Overconfidence in Future Gains

“Should SPL recover you can stagger sales to minimise tax.”

Why it’s dumb:

It assumes SPL will recover and that you’ll still be in a position to time sales for tax purposes. There’s no guarantee of recovery, and tax rules could change before that happens. Planning strategy based on speculative future profits is wishful thinking, not sound tax planning.

4.

Contradiction and Irony

“Don’t trust HC speculation – get your own confirmation”

While promoting a speculative tax trick that could land you in trouble.

Why it’s stupid:

The whole advice is built on speculation, illegal or borderline strategies, and misleading certainty, yet warns readers about speculation on forums. It’s a textbook example of projection and irony.

5.

Fails to Mention ATO’s 2023 Focus

The ATO has publicly warned taxpayers about “wash sales”, especially when tax losses are harvested without genuine economic loss. This advice ignores that and exposes the reader to audit risk.

✅ Final Thought

The smarter move is what the writer says in passing:

“Seek good advice from accountants, financial advisors and specialist super advisors.”

That part’s right — because if you follow the rest, you’ll likely end up with a tax problem, not a solution