Taxation of Financial Arrangements Stages 3 & 4

In Media Release No. 54 on 13 May 2008, the Government announced its plan to proceed with Taxation of Financial Arrangements (TOFA) Stages 3 and 4.

Stages 3 & 4 are intended to provide increased certainty, reduced compliance costs and greater neutrality for the tax treatment of gains and losses made on financial arrangements.

Exposure Draft Legislation and Explanatory Material

TOFA Stages 3 and 4 exposure draft legislation and explanatory material has been made available for comment as part of the latest round of consultations. The draft legislation has undergone a number of technical amendments, including the addition of consolidation interaction rules. The new draft legislation also includes integrity rules to address value shifting and non-arm's length dealings in relation to financial arrangements.

Submissions

Comments on the exposure draft legislation and explanatory material should be submitted to the Treasury by Friday 17 October 2008. Submissions may be made by using the contact information to the right of screen.