Taxation of Financial Arrangements (TOFA)

Guide to the taxation of financial arrangements (TOFA)

Guide to the taxation of financial arrangements (TOFA) rules.

PAYG instalments for TOFA entities

Special rules apply to taxation of financial arrangements (TOFA) entities that use the instalment rate (option 2) to calculate their PAYG instalments.

TOFA compliance

As part of our compliance activities, we may review TOFA taxpayers to ensure they are correctly applying the TOFA rules to their financial arrangements, and to assess whether the objective of the TOFA legislation are being met

TOFA elections

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

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.