A category B RTP is a position in respect of which uncertainty about taxes payable or recoverable is recognised and/or disclosed in the taxpayer's or a related party's financial statements.
Uncertainty about taxes payable or recoverable exists where there is a difference between the taxpayer's position and the measurement and/or recognition of the taxes payable or recoverable in respect of that position as adopted in the taxpayer’s or a related party's financial statements. A category B RTP is material if this difference is equal to or exceeds your materiality amount. You only have to disclose a category B RTP if it is material.
Taxes payable or recoverable exist where an income tax-related provision, current tax liability (asset) and/or contingent liability (asset) is recognised and/or disclosed in accordance with accounting principles in the taxpayer’s or a related party’s financial statements for the first time in or after the 2012–13 income year.
Where an income tax-related provision, current tax liability (asset) and/or contingent liability (asset) was recognised and/or disclosed in the taxpayer’s or a related party’s financial statements in a prior income year, taxes payable or recoverable will exist where the recognition or disclosure of that item has increased in the taxpayer’s or a related party’s financial statements in the 2015–16 income year.
The concepts of 'recognition', 'measurement' and 'disclosure' are to be given meanings in accordance with accounting principles