
TY  - JOUR
A1  - Murray, J.H. 
T1  - TAXATION OF FINANCIAL ARRANGEMENTS &#x2014;FURTHER DEVELOPMENTS
JF  - The APPEA Journal
JO  - The APPEA Journal
Y1  - 2007
VL  - 47
IS  - 1
SP  - 443
EP  - 468
KW  - 
UR  - https://doi.org/10.1071/AJ06035 
N2  - On 3 January 2007 the Minister for Revenue and Assistant Treasurer Peter Dutton released revised exposure draft legislation and explanatory material in relation to the taxation of financial arrangements that would &#x2018;reduce uncertainties and distortions&#x2019;. Further Mr Dutton said that:&#x2018;The reforms will lead to lower costs for financial activities conducted by business and result in improved competitiveness and great efficiency in the general operation of Australia&#x2019;s financial markets.&#x2019;This release followed a previous exposure draft released for consultation purposes during December 2005. Many changes have arisen as a result of the consultation process and the current draft is a positive step in providing a comprehensive code to regulate this area. As with any proposal there remain issues that are uncertain; however, the Government is committed to the consultation in relation to the current draft.At a high level this legislation allows taxpayers to more closely align the tax treatment of financial arrangements to accounting treatment.The exposure draft is incomplete in that it does not contain rules to address the tax treatment of synthetic financial arrangements and Treasury has left open whether further integrity measures will be introduced.This paper seeks to outline the primary provisions proposed in the draft legislation and discuss in general terms what the changes may mean to companies operating in the oil and gas industry. Further, the paper recommends several steps that companies can take now to prepare themselves for the introduction of the law. 
ER  -

