The Government announced on 25 November 2011 that it would amend the taxation of financial arrangements (TOFA) consolidation interaction and transitional provisions to ensure that the tax treatment of financial arrangements that are part of the assets and liabilities in a consolidation/joining event is consistent with the TOFA tax timing rules and takes into account changes in value of financial arrangements that are liabilities.
This measure was included in Tax Laws Amendment (2012 Measures No 2) Bill 2012, which was introduced into Parliament on 24 May 2012.
Consultation on exposure draft legislation and related explanatory material was conducted between 18 April 2012 and 2 May 2012. Seven submissions were received, 2 of which were confidential. For access to the public submissions, go here and click on View Submissions