The liquidator of Finchley Central Funds Management (Finchely) has advised investors of the group's two trusts to seek taxation advice as they are unlikely to receive any further distributions for their unit holdings.
In a letter to investors dated 28 March, Jennifer Low of Sheridans Chartered Accountants said there is "no likelihood" investors in the Gilead Trust and the Riverside Trust will receive any further distributions for their unit holdings.
The result of no further distributions has the effect of creating a capital gains tax event G3, Low said.
"One possible option is that unit holders in either trust may choose to make a capital loss in the current income year; investors should seek their own taxation advice about the calculation of the capital loss," the letter said.
"I note that in the unlikely event of a future distribution to unit holders, the distribution may be accessible as a capital gain to those unit holders who have realised a capital loss pursuant to section 104-135 or 104-25 of the Income Tax Assessment Act 1997. Again, investors should seek their own taxation advice."
Late last month, the liquidator informed investors it failed to secure $181,300 in ASIC funding to continue its investigations into the collapse of the group.
"On 24 February 2011, I submitted a second application for more limited funding of $64,630 plus GST. I am awaiting ASIC's response," Low said at the time.
At the time, Low said The Gilead Trust had also advised that it had exhausted all remaining possibilities for a new financier and restructure of the project with no discussions ongoing.
In October 2010, ING made the decision to put up the project for sale. Despite discussions being held with interested parties in November last year, no offers were received that were acceptable to ING and the project remains on the market.
In regards to the Riverside Trust, despite initial optimism of a possible sale, only one offer was received, which was substantially below the asking price.
