Prior-year losses deducted or applied
A position includes statements made in your company income tax return that you have deducted prior-year tax losses or applied prior-year unapplied net capital losses to reduce the net capital gain included in your assessable income.
Only material positions must be disclosed. For example, a Category A RTP will be material where the potential adjustment, should the position not be sustained, is equal to or exceeds your materiality amount.
You must also consider whether you have a material Category B RTP that must be disclosed.
Prior-year losses carried forward
A statement made in your company income tax return that you have carried forward prior-year tax losses or prior-year net capital losses to later income years should not give rise to a potential adjustment – in this instance, the position is not material and is not required to be disclosed.
Current year loss position
Material positions can arise when you are in a loss year. You can have a potential adjustment but no change to your income tax liability for that income year.
You must consider whether you have material positions that must be disclosed when you are in a loss year.