You need to disclose Category A and B reportable tax positions in section B.
You only need to disclose Category A and B positions that exceed your entity's materiality amount.
You must confirm if your entity has any Category A or Category B disclosures.
Tax positions that are a Category C and Category A or B reportable tax position must be disclosed under section C. You must select no if your entity has a reportable tax position that is both a Category C and Category A or B position.
If you select no, go to Section C: Category C reportable tax positions.
If you select yes, the next question will ask how many Category A or B reportable tax positions you are reporting.
Category A: Tax uncertainty in your entity's income tax return
A Category A reportable tax position is one where, considering relevant authorities, you consider the position taken is either:
- about as likely to be correct as incorrect
- less likely to be correct than incorrect.
See also:
Category B: Tax uncertainty in financial statements
A Category B reportable tax position is a position where uncertainty about taxes payable or recoverable is recognised or disclosed in your entity (or both), 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 or recognition (or both) of the taxes payable or recoverable in respect of that position, as adopted in your entity, or a related party's, financial statements.
See also:
How many Category A and B reportable tax positions are you reporting?
Enter the total number of reportable tax positions you are reporting at How many Category A and B reportable tax positions (RTPs) are you reporting? field.
Using the PDF schedule
If you are completing the PDF version, once you enter the number of reportable tax positions you are disclosing and move off the field, the document will automatically display the required number of fields to make the disclosure(s).
You must complete all the mandatory fields for each reportable tax position you are reporting.
RTP number
You must complete the RTP number field using the format:
- the relevant income year for the RTP in CCYY format (for example, 2020)
- followed by a dash (-)
- followed by the number corresponding to the number in the box beside RTP at the top of the section for that disclosure placing a zero (0) before numbers below 10.
There should be no spaces in the RTP number, and the numbers should be sequential in the order you report the positions to us. For example, number the first RTP ‘2020–01’, with each subsequent RTP numbered ‘2020–02’, ‘2020–03’, and so on.
Have you discussed this position with the ATO?
You must confirm if you (or another representative of your entity) have previously discussed the disclosure with us, for each disclosure you are making. All fields must be completed for each disclosure you are making, no matter what answer you provide to this question.
RTP category
Enter the category of reportable tax position you are reporting in the RTP category:
- A for Category A
- B for Category B
- A & B (for both categories).
Using the PDF schedule
If you are completing the PDF version, select the appropriate category from the drop-down menu.
Concise description
Type a brief description of each Category A or B reportable tax position in the Concise description field. Briefly describe the arrangement(s) or transaction(s), including the relevant facts and circumstances, relevant to the position you are disclosing.
If the position is covered by a private ruling notice you don't need to describe the arrangement or transaction. You only need to provide the ATO reference number for the ruling in the Concise description field. The reference number is also referred to as the authorisation number. You must also state if the arrangement or transaction was implemented as described in the ruling.
If the position is covered by an advance pricing arrangement (APA) or an APA application accepted into our APA program, you don't need to describe the arrangement or transaction. You only need to provide the ATO reference number for the APA, or APA application, in the Concise description field.
You can find the relevant reference number in the top right-hand corner of correspondence from us related to your entity's private ruling or APA.
See also:
- Examples – disclosing reportable tax positions on the schedule
- Private rulings
- Advance pricing arrangements
Using the PDF schedule
Once information has been entered, the field will expand when you click on or move to another field. You will then be able to view all the text in the Concise description field.
Basis for position
Outline the position taken in your entity's income tax return and the basis for that position, including:
- specific references in any legislation your entity relied on, don't simply refer to a division or subdivision
- all relevant authorities you had regard to when concluding the likelihood of the position
- any industry or administrative practices.
If the position is covered by:
- a private ruling, type only 'private ruling' in the Basis for position field, unless there a material differences in the implemented arrangement or transaction to what was described in the ruling. If material differences exist, you must state these key differences in the Basis for position field
- a ruling application, which has been withdrawn, type only 'private ruling application - withdrawn' in the Basis for position field
- an advance pricing arrangement (APA), type only 'APA' in the Basis for position field
- an APA application, type only 'APA application' in the Basis for position field.
See also:
Using the PDF schedule
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 the Basis for position field.
The field will accept 3,000 characters or approximately 500 words. You can attach additional information if required.