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  • 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

    This question aims to identify if you are subject to taxation of financial arrangements (TOFA) rules contained in Division 230 of ITAA 1997. Understanding whether you are subject to the TOFA rules and the tax timing method elections you have made will provide us with the context to understand the information you report regarding your financial arrangements.

    The TOFA rules will apply to you if your aggregated turnover, financial assets or assets exceed relevant thresholds or you have otherwise made an election for the TOFA rules to apply.

    If you are subject to the TOFA rules contained in Division 230 of the ITAA 1997 answer 'Yes' at label A of question 20 and complete the required fields.

    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, at item 20, labels B through F. If no election was made, you should complete label G. These tax timing method elections are contained in subdivisions 230-C to 230-F of the ITAA 1997.

    Further Information

    For help working out if Division 230 of the ITAA 1997 applies to you and the relevant threshold tests, refer to:

    End of further information

    Example

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

    ABC Co has made elections in accordance with Division 230 of the ITAA 1997 to apply the fair value method and the foreign exchange retranslation method - general election.

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

    With this information, ABC Co would complete question 20

    Last modified: 08 Aug 2014QC 26054