17 Sep 1010 NTLG TOFA Working Group
Taxation Institute Tax Counsel, Tamera Lang ATIA and Tony Frost FTIA (Greenwoods & Freehills) represented the Taxation Institute at the NTLG TOFA Working Group meeting on Tuesday 14 September 2010. The Working Group discussed the treatment of securitisation transactions at length. The ATO has not released its much anticipated discussion paper, but work is progressing. The ATO has sought assistance from financial accountants in order to understand the precise financial accounting outcomes. The ATO TOFA team are also seeking assistance from their colleagues on some of the trust law aspects of securitisations, and how this interacts with TOFA.
There are a number of TOFA issues which may result in referrals to Treasury for possible legislative change. These include the scope of item 104(3) (related to the un-grandfathering election), the treatment of trust distributions and withholding tax interactions. Treasury are also considering a possible discretion to allow the ATO is accept late TOFA elections (though this is subject to government consideration and may or may not be legislated).
The Taxation institute notes that the publication of the TOFA issues lists and discussion papers on the ATO website are often delayed. If members are looking for the status of a TOFA issue or discussion paper, please contact us at Tax Policy and we will assist you.Finally, the ATO are open to receiving more TOFA issues to add to the issues list. If you have encountered issues that are not already on the list, please contact us at Tax Policy.