Sydney, 21 September, 2007: The Taxation of Financial Arrangements (TOFA) Bill is a significant tax reform which will reduce the compliance burden for Australian banks.
The Australian Bankers’ Association (ABA) welcomed the introduction of the Bill into Parliament which deals with the tax treatment of financial arrangements and will modernise the accruals and realisation rules as they apply to financial arrangements.
David Bell, Chief Executive of the ABA, said: “The Bill’s introduction follows a long period of consultation with the Government, in which member banks and other affected entities, worked closely and productively with officials from the Treasury and the Australian Tax Office (ATO) on the design of this new tax regime.”
“Banks look forward to the reduction in compliance requirements offered by TOFA. The tax treatment of complex financial instruments and transactions will be greatly simplified and this will have benefits to both taxpayers and the ATO.”
“The proposed rules for taxing financial arrangements should provide a better alignment between between financial accounts and tax accounts.”
The ABA will continue to work closely with the Government to ensure TOFA can be implemented smoothly, workable outcomes are achieved and that its benefits can be fully realised.
For further information:
Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439