• Question 20

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Complete by placing an 'X' in the applicable box. If you answer 'yes', you need to specify which (if any) of the tax timing method elections you have made to assess your gains and losses from financial arrangements.

    These tax timing method elections are contained in subdivisions 230-C to 230-F of the ITAA 1997.

    The taxation of financial arrangements (TOFA) rules contained in Division 230 of the ITAA 1997 modernise the tax treatment of gains and losses from financial arrangements. Understanding whether you are subject to the TOFA rules will provide us with the necessary context to understand the information you report regarding your financial arrangements.

    Further Information

    For help working out if 'Division 230' applies and the relevant threshold tests, refer to:

    End of further information

    Example

    ABC Co is an authorised deposit taking institution and the TOFA rules contained in Division 230 of the ITAA 1997 apply to all of its financial arrangements entered into on or after 1 July 2010.

    ABC Co has made valid elections under Division 230 of the ITAA 1997 to apply the fair value and general retranslation tax timing methods to all its financial arrangements subject to TOFA.

    With this information, ABC Co would complete question 20 as follows.

    Example of question 20 completed

    Last modified: 09 Nov 2011QC 24292