I didn't invest with this tax haven scheme, but I once upon a time, I was in a position where I was told to promote it!

At the turn of the century whilst I worked for an accounting firm, it was one of the programs the firm used actively in tax planning & as such, plenty of people took up the opportunity & I imagine they have now lost everything they put in.

The scheme worked by investing an amount of money in the current tax year & because it was an approved tax scheme, the money put in was completely tax deductible against the income earned during the year. The amount invested could pull your taxable income below certain tax rate thresholds, which made it an enticing option.

However, when you invest in such a project, all you own is a patch of trees.... somewhere, for a period of between five & twenty years. A lot can happen to a patch of trees over that time, so I always thought it was pretty risky. Of course, there was insurance for the whole lot burning down, but what if they were planted on a crap piece of land where they didn't grow or the wood itself was unusable for any number of reasons?

Seems I was right! Whilst I was told to recommend it during my time with the firm, I never actually did (Shhhh, don't tell anyone!). If I wouldn't invest in it myself, I couldn't bring myself to talk it up. I think I might have handed over the prospectus a couple of times, but I never said it was a good idea.

The minimum investment was $3,000 per block of a plantation, but no upper limit of how many blocks you could buy. Therefore, some of the wealthy folk bought blocks on mass thinking they'd scored against the tax man. Well, they did, but now it's cost them a whole lot more!

Basically, if you earn the money & you claim your work related expenses which are legitimate, just pay the darn tax! That's the best advice I can possibly give!