On 22 October 2008, the Taxation Institute lodged a submission in respect of the new TOFA Stages 3 and 4 exposure draft legislation and explanatory material released for public comment on 1 October 2008: see 2008 TAXVINE No 39 (4) (3 October 2008). Our submission was drafted principally by Hayden Scott FTIA (Greenwoods and Freehills) and Enzo Coia FTIA (Greenwoods and Freehills), with input from David Romans (PricewaterhouseCoopers) and Tony Frost (Greenwoods and Freehills).
The Taxation Institute generally agrees with the approach taken in this exposure draft in relation to the interactions between TOFA and tax consolidation. Our submission is mostly concerned with points of detail and requests for clarification of some of the ideas, particularly in the following areas:
- setting the tax cost of TOFA assets;
- setting a tax cost for TOFA liabilities;
- further guidance identifying relevant “asset” and “liability”; and
- clarification of examples in the explanatory material.
Whilst the Taxation Institute supports the Government’s commitment to introduce the Bill for this latest round of exposure draft TOFA material in the Parliament’s Spring sitting this year, we have urged the Government to clarify of a number of key outstanding issues before the Bill is introduced, or in the absence of all necessary changes being made before introduction, there is a commitment to ensure that resolution of the remaining issues remains a major priority between now and the proposed commencement date of 1 July 2009.
For a copy of our TOFA Stages 3 and 4 submission go here