The Government on Thur 10.1.2013, released for comment exposure draft legislation proposing to amend the TOFA tax rules, contained in Div 230 of the ITAA 1997. The Government said the changes, to clarify and refine the operation of certain aspects of the TOFA regime, are the outcome of ongoing monitoring of the implementation of the TOFA regime and, implement the changes announced by the then Assistant Treasurer on 29 June 2010. The proposed changes concern the following parts of the TOFA rules:
- core rules;
- accruals and realisation methods;
- fair value method;
- hedging financial arrangements method;
- transitional balancing adjustment provisions; and
- requirements for making certain elections.
The amendments are proposed to apply from the commencement of Div 230. This means that application will most commonly be for income years commencing on or after 1 July 2010, but will be for income years commencing on or after 1 July 2009 for those taxpayers, which have elected to apply Div 230 early.
COMMENTS are due by 13 February 2013.
[LTN 7, 11/1/13]