Is taxation of financial arrangements (TOFA) relevant to your ruling request?
If you are unsure, use the guide to taxation of financial arrangements (TOFA) to work out if the TOFA rules contained in Division 230 of the Income Tax Assessment Act 1997 (ITAA 1997) are relevant to your private ruling application.
If you are applying for a private ruling, send the following information with your private ruling application form.
TOFA start date and elections
Identify the income year in which the TOFA rules first apply to you.
Provide details of which of these TOFA elections you have made or intend to make:
For each election you have or will make, identify the date it either was or will be made.
Identify the material facts of each financial arrangement that TOFA will apply to.
For each financial arrangement:
- provide your analysis of why it is a financial arrangement to which the TOFA rules will apply - include references to relevant legislation and interpretative resources, such as case law and ATO viewsExternal Link, such as rulings
- advise whether it is a financial arrangement by virtue of
- section 230-45 of the ITAA 1997 (section 230-45 financial arrangement)
- subsection 230-50(1) of the ITAA 1997 (subsection 230-50(1) financial arrangement)
- subsection 230-50(2) of the ITAA 1997 (subsection 230-50(2) financial arrangement)
- subdivision 230-J of the ITAA 1997 (subdivision 230-J financial arrangement)
- advise when you started to have the financial arrangement.
For each 'section 230-45 financial arrangement', provide details of all the following:
- all the rights to receive and obligations to provide financial benefits you have under the arrangement
- whether the identified rights and obligations are cash settlable rights and obligations to receive or provide financial benefits
- why the arrangement is one financial arrangement for the purposes of subsection 230-55(4) of the ITAA 1997.
For each subsection 230-50(1) financial arrangement, provide details of why it satisfies the definition of an equity interest.
For each subsection 230-50(2) financial arrangement, provide details of all of the following:
- all the rights to receive and obligations to provide something that is a financial arrangement under section 230-50 under the arrangement
- why the arrangement is one financial arrangement for the purposes of subsection 230-55(4) of the ITAA 1997
- whether the right, obligation or combination is, or forms part of, a financial arrangement under subsection 230-45(1) of the ITAA 1997.
For each subdivision 230-J financial arrangement, provide details of how subdivision 230-J applies to the arrangement.
For each financial arrangement, explain whether any of the exceptions provided in subdivision 230-H of the ITAA 1997 apply.
How tax applies to the financial arrangement
For each financial arrangement, explain:
- which TOFA tax timing method applies to the financial arrangement - that is, accruals, realisation, retranslation, fair value, financial reports or hedging
- whether the financial arrangement gave rise to or is included in a transitional balancing adjustment amount under item 104 of Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009. If so, explain how the amount is calculated for the financial arrangement and why it is a financial arrangement to which the TOFA rules will apply.
NTLG TOFA working group
If you are aware of any issue addressed in your ruling application that has been considered by the NTLG TOFA Working Group , advise us of the issue number.
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.