"TREES, NUTS, OYSTERS, AND THE LIKE

"Special schemes offering tax concessions to small investors by letting them participate in trusts or syndicates involved with film production or with exotic products such as nuts, oyster farming or forestry are widely advertised towards the end of each financial year.

"It is usually undesirable for investors to rush into such ventures without getting independent expert advice. A tax loss might turn out to be a real loss as well. There may also be some uncertainty as to whether the investors will actually become eligible for all of the promised tax benefits.

"The value of any tax deduction needs to be weighed against the following:

• the frequently low level of the underlying returns
• the high expenses often charged to investors for the use of the corporate structure
• the high expenses often charged to investors for managing the enterprise itself
• the long time frame typically involved
• the risk of incurring commercial losses or even total failure
• the risk that tax deductions initially allowed get reversed on a reassessment and in addition lead to interest charges and penalties."