ARTICLE · 26 JANUARY 2013

Amendments proposed to 'Tidy Up' the TOFA rules

Moore Australia

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The Government has proposed a suite of amendments aimed at 'tidying up' the TOFA regime.

AustraliaTax

Stephen O'Flynn

Nick Zanikos

Andrew Cromb

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The Government has proposed a suite of amendments aimed at 'tidying up' the operation of the taxation of financial arrangements ("TOFA") regime. The proposals are contained in an exposure draft of legislation that was released by Treasury on 10 January 2013. The amendments cover a broad range of the TOFA rules including the core rules, the accruals and realisation methods and the elective fair value and hedging methods. Treasury has proposed that the amendments take effect from 26 March 2009 (the original enactment of the TOFA regime), so taxpayers will need to assess whether their current treatment of financial arrangements will continue to be correct after the amendments are enacted.

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