This Monday 5 December 2011, Matt Osmond FTIA (PwC) and Tony Frost FTIA (Greenwoods & Freehills) and represented The Tax Institute at a meeting of the NTLG TOFA Working Group.
A summary of discussions at this meeting is as follows:
- The ATO accepts that taxpayers will disclose net TOFA gains and losses in tax returns, that this should not present any practical PAYG risks and no compliance resources will be allocated to review TOFA tax return disclosures.
- Treasury is proposing to consult early in 2012 on TOFA hedging issues, an ED on amendments announced in January 2010 and an ED on the outstanding Division 775 forex amendments.
- The ATO is working on a number of interpretive TOFA products.
- The ATO’s TOFA Compliance Plan has commenced with 24 LB&I taxpayers, 16 SME taxpayers and other Q1 or Q2 risk taxpayers initially being selected to complete the pilot TOFA implementation questionnaire. The pilot should be completed by February 2012 and will then be extended to other taxpayers in 2012.
- The ATO continues to make progress on working through interpretational issues on the existing TOFA issues list including advising Treasury of required law changes where appropriate and new TOFA issues continue to emerge for the ATO’s consideration.
Members who would like further information in relation to the above are welcome to contact us at Tax Policy.