You need to disclose Category A and B reportable tax positions in this section. If your tax position is both a Category A or B RTP and a Category C RTP, you are not required to disclose it in Section B. In this instance, you must disclose this position as a Category C RTP under section C.
You only need to disclose Category A and B positions that exceed your materiality amount.
Category A: Tax uncertainty in your income tax return
A Category A RTP is a position where it would be concluded in the circumstances, having regard to relevant authorities, that what is argued for is about as likely to be correct as incorrect, or is less likely to be correct than incorrect.
See also:
Category B: Tax uncertainty in financial statements
A Category B RTP is a position in respect of which uncertainty about taxes payable or recoverable is recognised and/or disclosed in your or a related party's financial statements.
Uncertainty about taxes payable or recoverable exists where there is a difference between your position and the measurement and/or recognition of the taxes payable or recoverable in respect of that position as adopted in your or a related party's financial statements.
See also:
How many Category A and B reportable tax positions (RTPs) are you reporting?
The RTP schedule will require you to confirm 'No' or 'Yes' in respect to the existence of a Category A or Category B disclosures.
If you select no, then you do not have any Category A and B RTPs that you must disclose. Go to Section C: Category C reportable tax positions.
If you select yes, you have one or more RTPs that you are disclosing on this schedule. Go to the next question.
How many Category A and B RTPs are you reporting?
Enter the total number of RTPs you are reporting at How many Category A and B reportable tax positions (RTPs) are you reporting?
Using the PDF RTP schedule
If you are completing the PDF version, the indicated number of RTPs (fields) will appear based on the number you select here. Once you move off this item, the PDF will display the additional fields if you indicated you have more than one RTP. To make a complete disclosure, complete all the mandatory fields for each RTP reported.
RTP number
Each Category A or B RTP reported must have a unique number so it can be easily referenced.
In RTP number, type the relevant income year for the RTP, followed by a dash and a number for the RTP with no spaces between the dash and numbers on either side.
A number for the RTP should be a sequential number that identifies your RTPs in the order you report them to us. For example, number the first RTP ‘2019–1’, and each subsequent RTP should be numbered sequentially, for example ‘2019–2’, ‘2019–3’, and so on.
Have you discussed this position with the ATO?
The RTP schedule will require you to confirm if you have previously discussed the disclosure(s) with the ATO. Proceed to the next question no matter what answer you provide.
RTP category
In this label, provide the category of RTP you are reporting by selecting A (for Category A) or B (for Category B) in RTP category. If the RTP you are reporting relates to both categories, select A & B.
Concise description
Type a concise description of each Category A or B RTP in the Concise description field. You must outline the relevant facts that explain the RTP, including the circumstances, arrangements or transactions relevant to the position. Your explanation must include sufficient detail so that a reasonable person can identify the facts that are important to the position.
This schedule will allow you to type up to 3,000 characters (approximately 500 words) in this field.
Using the PDF RTP schedule
If you are completing the PDF version, the Concise description field will be displayed once you have indicated how many RTPs you are reporting. Once information has been entered, the field will expand when you click on or move onto another field. You will then be able to view all the text within a field.
For examples of how to complete the concise description, see disclosing RTPs on the schedule.
Basis for position
Outline the position taken in your income tax return, including relevant authorities and any industry or administrative practices.
You should outline all relevant authorities you had regard to when concluding the likelihood of the position. Do not refer to a division or subdivision of an Act – you must outline the specific legislative references within that division or subdivision.
You do not need to disclose in the schedule:
- that you are in receipt of any advice or opinion about the material RTP
- the content of any advice or opinion.
This schedule will allow you to type up to 3,000 characters (approximately 500 words) in this field. You can attach additional information.
Using the PDF RTP schedule
If you are completing the PDF version, the Basis for position field will be displayed once you have indicated how many RTPs you are reporting. Once information has been entered, the field will expand when you click on or move onto another field. You will then be able to view all the text within a field.
For examples of how to complete the basis for position, see disclosing RTPs on the schedule.