Taxation of financial arrangements (TOFA)

The TOFA rules provide for the tax treatment of gains and losses on financial arrangements. Generally, the rules will apply to large taxpayers. The TOFA rules are found in Division 230 of the ITAA 1997 which provides the methods for calculating gains and losses from financial arrangements, and the time at which these gains and losses will be brought to account.

Essentials

Overview

Elections

Compliance

Specific topics

TOFA tax return disclosure

Pay as you go instalments for TOFA entities

Changes to Consolidation and TOFA rules

More

Law

Rulings and ATO Interpretative Decisions

Community consultation

Press releases

Other related measures

Rulings and ATO interpretative decisions

Links to TOFA related rulings and ATO interpretative decisions

Assistance for TOFA private ruling application

Tool to help you consider relevance of the TOFA rules as part of your private ruling application and the supporting information we require for the application.

Changes to the operation of the Consolidation and TOFA rules

Information regarding the changes to the operation of the Consolidation and TOFA rules for consolidated groups including information about amendment requests.

NTLG TOFA Working Group issues

Guidance on finalised issues raised by the National Tax Liaison Group (NTLG) TOFA Working Group.

Community consultation fourms

A link to 'Finance and Investment' section of the Community consultation forums page.

Debt and equity tests

From 1 July 2001, specific rules apply in relation to the distinction between debt and equity interests. These rules also introduce a definition of debt for thin capitalisation and certain consolidation purposes.

Disclosing TOFA gains and losses in 2012 and later income tax returns

TOFA entities are required to disclose TOFA gains and TOFA losses in specified labels when they lodge their income tax returns. This page explains how TOFA gains and TOFA losses should be disclosed in the relevant labels of their income tax returns.

TOFA tax return labels - quick reference guide

Outlines the tax return labels your clients must complete if they are TOFA entities.

Guide to the taxation of financial arrangements (TOFA) rules

Explains the rules for the tax treatment of gains and losses from financial arrangements.

The Taxation of Financial Arrangements (TOFA) rules explained - webcast

A webcast providing an introduction to the TOFA rules and how they operate.

Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009

Inserts Division 230 to the ITAA 1997 as well as consequential and transitional provisions.

Tax Laws Amendment (2010 Measures No. 4) Act 2010

Minor policy refinements and technical amendments.

Income Tax Assessment Amendment Regulations 2011 (No. 4)

Extends the time in which taxpayers can comply with certain aspects of the tax hedge record keeping requirements.

Tax Laws Amendment (2011 Measures No. 7) Act 2011 (147 of 2011)

Amendments to the definition of instalment income of certain taxpayers to include net TOFA gains, and to provide the Commissioner a limited discretion to extend the time for a taxpayer to notify the Commissioner of the making of a transitional election.

Tax Laws Amendment (2012 Measures No. 2) Act 2012

Amends the operation of the consolidations regime and the taxation of financial arrangements (TOFA) rules.

Making elections under the TOFA rules

Explains what elections are available under the TOFA rules, as well as when and how to make them, including election forms.

PAYG instalments for TOFA entities

Information on how the TOFA PAYG instalment income rules affect TOFA entities.

TOFA press releases

A list of press releases and announcements relating to TOFA rules.

Taxation of financial arrangements - amendments to tax hedging rules

The government will amend the taxation of financial arrangements (TOFA) tax hedging rules to ensure the rules operate as intended and to provide further certainty and reduce compliance costs for affected taxpayers.