Announcements
PUBLISHED 13 November 2003

Issues paper: Tax treatment of loans and forward contracts in a foreign currency

An issues paper released today invites comment on suggested changes to use of determinations G9B and G14A in accounting for tax for foreign exchange gains and losses on financial arrangements. It examines the problem of taxpayers who now cannot use the determinations because they did not elect to do so within the time available, and suggests legislative changes to resolve the problem. The key change would be to make use of the two determinations mandatory.

The paper, prepared by officials as part of the tax policy development process, seeks views on the suggested changes before officials make recommendations to the government. For more information see the issues paper, "The tax treatment of loans and forward contracts in a foreign currency".