• Default methods

    TOFA provides for a number of elective tax-timing methods that can be applied to work out when, for tax purposes, an entity makes a gain or a loss from certain financial arrangements.

    There are two default methods:

    Where no elective method applies, the accruals and realisation methods apply by default to the financial arrangement.

    Changes to legislation made in June 2013 have altered the application of the default methods, particularly in relation to prepayments, single financial benefits, and impairments.

      Last modified: 10 Jun 2016QC 27222