amendments to the taxation of financial arrangements
SUMMARY OF CONSULTATION PROCESS

The Government announced on 13 May 2008 that it would proceed with a number of amendments to the foreign currency gains and losses rules announced by the previous Government on 5 August 2004.   The amendments make minor policy refinements and technical corrections to Division 775 of the Income Tax Assessment Act 1997 (ITAA 1997), which gives effect to TOFA Stage 2.  
The Tax Laws Amendment (2010 Measures No. 4) Bill 2010 (the Bill) gives effect to items 2.4, 3.1 to 3.6 and 3.9 of these amendments and was introduced into Parliament on 23 June 2010.
Consultation process
The original announcement followed extensive consultation on the implementation of the foreign currency gains and losses rules.  In April 2009 confidential consultation with private sector representatives was undertaken on a discussion paper that outlined the suggested approach to a number of technical issues. 
Feedback
Feedback on the consultation process for this measure can be forwarded to tofa@treasury.gov.au. Alternatively, you can contact Nan Wang on 02 6263 2768.
Thank you to all participants in the consultation process.