Tax briefing: Taxation of financial arrangements
The Government has been talking about changing the rules relating to the taxation of financial arrangements (TOFA) for several decades. It finally looks like it will happen, with an updated Exposure Draft that is being pushed forward by Treasury and the Government. The rules have been welcomed by the financial industry, as they replace the hodge-podge of rules that currently cover this area, but are complicated to say the least for the ordinary business person. However, they are so broad in their application and wording, that they apply to many standard transactions and it will be difficult for the ordinary person to stay completely clear from them.
BDO Kendalls' corporate tax experts cut through the maze to explain how the rules will impact on you, what they will mean and what you need to do to ensure that they don't create unwanted tax liabilities.