Interpreting the TOFA balancing adjustment rules, following the Tabcorp decision

The judgement in Tabcorp considers the application of the Taxation of Financial Arrangements (TOFA) rules to an arrangement that becomes a TOFA ‘financial arrangement’ once all the non-cash settlable rights and obligations in the arrangement have been satisfied.

The central question in Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation (Tabcorp) concerned whether a TOFA ‘financial arrangement’ arose from the circumstances associated with the termination of gaming license arrangements in Victoria. While Thawley J ultimately found there was no financial arrangement, his Honour provides useful commentary on the TOFA balancing adjustment calculation methodology. Background While the facts are complex, in short, Tabcorp paid vari...

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Authors: Julian Humphrey, Sagar Joshi

Published Date: 05 March 2025