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Australia: Termination of taxpayer’s gaming licenses did not result in deductible loss under TOFA rules (Full Federal Court decision)

Right with no real prospection of satisfaction is not a contingent right for TOFA purposes.

march 27, 2026

The Full Federal Court in Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation [2026] FCAFC 30 upheld the Federal Court’s decision that the termination of a taxpayer’s gaming licenses in Victoria did not create a “financial arrangement” subject to the Taxation of Financial Arrangements (TOFA) rules, and as a result, the taxpayer was not entitled to a deduction under those rules.

In its decision, the court confirmed that a right with no real prospect of satisfaction is not a contingent right for TOFA purposes.
 

For more information, contact a KPMG tax professional in Australia:

James Macky | jmacky@kpmg.com.au

Julian Humphrey | jrhumphrey@kpmg.com.au

Sagar Joshi | sjoshi10@kpmg.com.au

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