Section C: Category C reportable tax positions

How to complete Section C: Category C RTPs.

Published 6 February 2025

What to disclose in Section C

In Section C you need to disclose Category C RTPs. You must complete all the mandatory fields for each RTP you're reporting.

The questions will tell you if you need to consider materiality. When the question doesn't include any materiality criteria, you must disclose a Category C RTP if the arrangement, transaction or circumstances it covers is relevant for your entity.

Unless we specify otherwise, the questions refer to arrangements or transactions:

in place at any time in the income year
your tax return covers and the schedule accompanies.

You don't need to disclose an arrangement for a Category C question referencing a taxpayer alert if:

we review the arrangement and advise we won't be taking further action
there has been no material change to the arrangement since our review.

Did you have any Category C RTPs for the 2024–25 income year?

You must confirm if your entity has any Category C disclosures.

Select from the drop-down menu, either Yes or No.

If you select No, go to Section D: Declaration and signature.

If you select Yes, the next question will ask how many Category C RTPs you are reporting?

How many Category C RTPs are you reporting?

Write the total number of Category C RTPs you are reporting.

You will need to follow the instructions for answering individual Category C questions to ensure you make a complete disclosure.

Using the PDF schedule

In the PDF version, once you enter the number of RTPs you are disclosing and move off the field, it will automatically display the required number of fields to make the disclosures.

Have you discussed this position with the ATO?

For each disclosure you make, you must confirm if you (or another representative of your entity) have previously discussed the disclosure with us. You must complete all fields for each disclosure, no matter what answer you provide.

Select from the drop-down menu, either Yes or No.

RTP Category C question and subcategory

Write the number of the Category C question you are disclosing in the RTP Category C question field. If there are subcategories, enter the relevant subcategory in the RTP Category C subcategory field.

If your entity has multiple positions covered by a single question, the question will tell you how to disclose this. You may need to select the appropriate subcategory or make a disclosure for each position.

For all Category C questions, you must make a disclosure if your entity had an arrangement covered by a question at any time during the year. If the arrangement is no longer in place at the time of preparing your entity's tax return, note this in the Comments field.

Comments

Some questions specify the information you must provide in this field.

If a question doesn't require information in the Comments field, we encourage you to briefly explain your entity's arrangements. Doing so may mean we:

don't need to contact you for more information
can target the questions we ask if we do require more information.

Question 1

Question removed as the information is collected through other means.

Question 2

Question removed. A new integrity measure addresses concerns raised in Taxpayer Alert TA 2015/2 Franked distributions funded by raising capital to release franking credits to shareholders.

Question 3

Has your entity entered into arrangements, or variation of arrangements, described in Taxpayer Alert TA 2015/5 involving the use of offshore entities that source goods (procurement hubs)?

Question 4

Question removed due to legislative changes.

Question 5

Question removed as the information is collected through other means.

Question 6

Question removed as the arrangement falls within Schedule 2 of Practical Compliance Guideline PCG 2017/4 ATO compliance approach to taxation issues associated with cross-border related party financing arrangements and related transactions and the risk rating under Schedule 2 you must disclose at question 23.

Question 7

Question removed as the information is collected through other means.

Question 8

Question removed due to legislative changes.

Question 9

If your entity has related party dealings involving centralised services hub arrangements, disclose the outcome you have self-assessed using the applicable schedule in Practical Compliance Guideline PCG 2017/1 ATO compliance approach to transfer pricing issues related to centralised operating models involving procurement, marketing, sales and distribution functions. Disclose the outcome you have self-assessed for each hub arrangement your entity has involvement in.

For offshore marketing hub arrangements:

Subcategory 1: white zone
Subcategory 2: green zone
Subcategory 3: blue zone
Subcategory 4: yellow zone
Subcategory 5: amber zone
Subcategory 6: red zone
Subcategory 7: red zone, didn't apply ATO risk methodology or calculate tax impact.

For offshore non-core procurement hub arrangements:

Subcategory 11: white zone
Subcategory 12: green zone
Subcategory 13: blue zone
Subcategory 14: yellow zone
Subcategory 15: amber zone
Subcategory 16: red zone
Subcategory 17: red zone, didn't apply ATO risk methodology or calculate tax impact.

Write the relevant subcategory number in the RTP Category C subcategory field.

In the comments section, provide for each disclosed arrangement under:

Schedule 1, the goods or commodities sourced from Australia and sold through the marketing hub arrangement, or
Schedule 2, the goods or services acquired through the non-core procurement hub arrangement.

If the arrangement has been subject to a review by us, provide our reference number in the Comments field. This can be found in the top right corner of correspondence from us relating to the review.

If you have discussed the arrangement with us, outside of a formal review product, provide details of the discussion in the Comments field.

Question 10

Question removed due to legislative changes.

Question 11

Is your entity currently involved in cross-border, round robin financing arrangements using an arrangement, or variation of an arrangement, described in Taxpayer Alert TA 2016/10 Cross-Border Round Robin Financing Arrangements?

Question 12

Was your entity party to an arrangement separating an integrated trading business into parts that results in trading income being re-characterised into more favourably taxed passive income?

For more guidance, see Taxpayer Alert TA 2017/1 Re-characterisation of income from trading businesses.

Question 13

Has your entity claimed the R&D tax incentive using an arrangement, or variation of an arrangement, as per the descriptions in the subcategories below?

Subcategory 1: Taxpayer Alert TA 2017/2 Claiming the Research and Development Tax Incentive for construction activities
Subcategory 2: Taxpayer Alert TA 2017/3 Claiming the Research and Development Tax Incentive for ordinary business activities
Subcategory 3: Taxpayer Alert TA 2017/4 Claiming the Research and Development Tax Incentive for agricultural activities
Subcategory 4: Taxpayer Alert TA 2017/5 Claiming the Research and Development Tax Incentive for software development activities
Subcategory 5: More than one of the Taxpayer Alert subcategories applies.

Write the relevant subcategory number in the RTP Category C subcategory field.

If more than one taxpayer alert subcategory applies, write the relevant Taxpayer Alert references in the Comments field.

Question 14

If your entity has cross-border related party finance arrangements, disclose the outcome you have self-assessed using PCG 2017/4 ATO compliance approach to taxation issues associated with cross-border related party financing arrangements and related transactions. Use Schedule 1 and/or Schedule 3 for the 3 most material arrangements.

If your entity has a cross-border related party finance arrangement with a higher risk rating to the 3 already disclosed, you must also disclose this arrangement.

Include each arrangement as a separate disclosure on the RTP schedule.

Materiality is determined by the loan amount in Australian dollar equivalent. Use the instructions for question 11 of the International dealings schedule 2025 (IDS) to determine materiality.

For related party debt funding arrangements under Schedule 1:

Subcategory 1: white zone
Subcategory 2: green zone
Subcategory 3: blue zone
Subcategory 4: yellow zone
Subcategory 5: amber zone
Subcategory 6: red zone
Subcategory 7: red zone, if you have not applied Schedule 1.

For related party outbound interest-free loans under Schedule 3:

Subcategory 11: white zone
Subcategory 12: green zone
Subcategory 13: blue zone
Subcategory 14: yellow zone
Subcategory 15: amber zone
Subcategory 16: red zone
Subcategory 17: red zone, if you have not applied Schedule 3.

Enter the relevant subcategory number in the RTP Category C subcategory field.

For each of the arrangements you disclose, provide in the Comment field:

the currency of the loan
the rate of interest (if variable, the base rate and margin)
the Australian dollar equivalent loan amount
if the arrangement is an outbound or inbound loan
If the arrangement has been subject to any review by us, provide our reference number. This can be found in the top right corner of correspondence from us relating to the review. If you have discussed the arrangement with us outside a formal review product, provide details of the discussion.

Question 15

Question removed as the information is collected through other means.

Question 16

Question removed.

Question 17

At any stage during the income year, did your entity have cross-border financing arrangements with an international related party (including back-to-back arrangements through third parties) where it claimed a tax deduction for interest, an amount in the nature of interest, or any other loss it made on a financial arrangement under Division 230 and interest withholding tax wasn't remitted because a withholding tax liability isn't expected to arise within the next 18 months.

For more guidance, see Taxpayer Alert TA 2018/4 Accrual deductions and deferral or avoidance of withholding tax.

Question 18

Question removed as the information is collected through other means.

Question 19

If your entity has reached a formal settlement agreement or future compliance arrangement with us that applies to the current income year, disclose the outcome of your entity's terms of agreement using the following subcategories:

Subcategory 1: your entity breached one or more of the terms of the settlement deed or future compliance arrangement.
Subcategory 2: changes in the relevant and material facts, as disclosed in the deed or arrangement, have occurred.
Subcategory 3: your entity is compliant with the terms of settlement deed or future compliance agreement.

Write the relevant subcategory number in the RTP Category C subcategory field. Write the number 1 if both 1 and 2 subcategories apply.

In the Comment field, provide details of the circumstances relevant to the subcategory and provide our reference number for the settlement agreement or forward compliance arrangement. This can be found in the top right corner of correspondence from us related to the settlement or agreement.

Question 20

Question removed as the information is collected through other means.

Question 21

Are you aware of any unamended mistakes or omissions in any single tax return lodged by your entity within 4 years of the lodgment date of this RTP schedule where, if you amend all mistakes or omissions in that tax return, it would result in either:

more than $1.5 million in tax being payable (or would have been payable had it not been offset, for example by losses from prior income years)
more than $5 million in losses (including capital losses).

For the purposes of this calculation, only count mistakes and omissions your entity hasn't previously notified us of.

In the Comments field, provide details of the mistakes or omissions, the:

tax returns the mistakes or omissions applies to
nature of the mistakes or omissions
amount of tax payable or losses the mistakes or omissions would result in.

Question 22

If your entity has restructured out of any arrangements in the current year to which the hybrid mismatch rules applied, or would have applied had the arrangements remained in place, disclose the subcategory that describes your entity's current position:

Subcategory 1: all restructured arrangements qualify as low risk under Practical Compliance Guideline PCG 2018/7
Subcategory 2: one or more of the restructured arrangements don't qualify as low risk under PCG 2018/7.

In considering whether the hybrid mismatch rules would apply you must disregard dual inclusion income.

Write the relevant subcategory number in the RTP Category C subcategory field.

For arrangements that are not low risk, in the Comment field provide:

details of the restructured arrangement
basis on which the arrangement didn't qualify as low risk under PCG 2018/7.

If you have disclosed the details of the restructured arrangement as part of your disclosure for the income year in the restructures section of your local file short form lodgment, you may refer us to that disclosure in your comments. You are still required to provide the basis on which the arrangement didn’t qualify as low risk under PCG 2018/7.

For the income year 2025 only, if you're not lodging your local file short form 2025 together with the lodgment of your tax return 2025, note that the information we require in the RTP schedule about the arrangement will be disclosed in your short form 2025 by the local file short form due date.

Question 23

If your entity has related party derivative arrangements, disclose the outcome you have self-assessed using PCG 2017/4, Schedule 2 for the 3 most material arrangements.

If your entity has a related party derivative arrangement with a higher risk rating than the 3 already disclosed, you must also disclose this arrangement.

Include each arrangement as a separate disclosure on the RTP schedule.

Determine materiality by the hedged item amount in Australian dollar equivalent.

Subcategory 1: white zone
Subcategory 2: green zone
Subcategory 3: blue zone
Subcategory 4: yellow zone
Subcategory 5: amber zone
Subcategory 6: red zone
Subcategory 7: red zone, if you have not applied Schedule 2.

Write the relevant subcategory number in the RTP Category C subcategory field.

In the Comment field for each red and amber arrangement you disclose, provide the:

underlying transaction hedged by the derivative, including the loan quantum in Australian dollar equivalent
commercial and operational reasons for borrowing in a foreign currency
name and location of the counterparty for the derivative and hedged item.

In the Comment field for all other arrangements, if the arrangement has been reviewed by us, provide our reference number. This can be found in the top right corner of correspondence from us relating to the review. If you have discussed the arrangement with us outside a formal review product, provide details of the discussion.

Question 24

If your entity has related party dealings involving inbound distribution arrangements, in the RTP Category C subcategory field write either:

9 – where your entity hasn't self-assessed the risk zone of the arrangements using Practical Compliance Guideline PCG 2019/1 Transfer pricing issues related to inbound distribution arrangements
- If your entity has adopted the distributor simplified transfer pricing record keeping option in Practical Compliance Guideline PCG 2017/2 Simplified transfer pricing record-keeping options, record PCG 2017/2 applied in the Comments field.
- If paragraph 49 of PCG 2019/1 applies to your entity's arrangements, record in the Comments field which exclusion categories (from paragraph 49) apply.
The appropriate number from the table below, where your entity has self-assessed the risk zone of the arrangements using PCG 2019/1.

RTP Category C subcategory field – risk assessment ratings
Category	Low risk	Medium risk	High risk
General distributor – Schedule 1 (not in an industry sector specifically covered by a separate schedule)	11	12	13
Category 1 Life science industry – Schedule 2	21	22	23
Category 2 Life science industry – Schedule 2	31	32	33
Category 3 Life science industry – Schedule 2	41	42	43
Category 1 ICT industry – Schedule 3	51	52	53
Category 2 ICT industry – Schedule 3	61	62	63
Motor vehicles industry – Schedule 4	71	72	73

Select the industry sector you believe best describes your entity. If the schedule for this industry sector has different categories of activities that generate value, select the one you believe best reflects the inbound distribution arrangement.

Calculate your entity's 5-year weighted average EBIT margin based on financial information without making adjustments for comparability purposes. This reflects how the profit markers in PCG 2019/1 have been constructed.

If your entity hasn't lodged tax returns for each of the 5 preceding income years, calculate the EBIT margin on a weighted average over the preceding years of consecutive lodgements.

If your entity has an inbound distribution arrangement but you can’t determine an EBIT margin for the arrangement, answer with Subcategory 9 indicating you didn't apply PCG 2019/1. Provide the reason you couldn't determine the EBIT margin in the Comments field.

Question 25

Has your entity claimed deductions for expenses incurred under arrangements with offshore related or unrelated parties and used intangible assets held by an offshore party in connection with these arrangements, where the arrangements don't appropriately recognise an amount as consideration for the use of the intangible assets.

Write the number one (1) in the RTP Category C subcategory field.

Has your entity claimed deductions for expenses incurred under arrangements with offshore related parties and used intangible assets held by an offshore related party in connection with these arrangements, where one of the following subcategories applies:

Subcategory 2: your entity hasn't applied the arm’s length principle in determining the appropriate consideration for the use of the intangible assets.
Subcategory 3: your entity has considered the arm’s length principle in determining the appropriate consideration for the use of the intangible assets, but the arrangement isn't covered by section 284–255 ofTaxation Administration Act 1953 compliant transfer pricing documentation.

Write the relevant subcategory number in the RTP Category C subcategory field.

If multiple subcategories apply to a single arrangement, record the lowest subcategory. For example, if both subcategories 1 and 2 apply, record subcategory 1.

If your entity has more than one arrangement you will need to disclose each arrangement separately, unless the criteria for treating similar arrangements or transactions as a single position apply. In this case, record the number of arrangements in the Comments field.

For more guidance, see Taxpayer Alert TA 2018/2 Mischaracterisation of activities or payments in connection with intangible assets.

Question 26

If your entity is a multiple entry consolidated (MEC) group, has it entered into arrangements, or variation of arrangements, as described in Taxpayer Alert TA 2019/1 Multiple entry consolidated (MEC) groups avoiding CGT through intra-group debt. And where a group CGT asset (with a large unrealised capital gain) is sold through an eligible tier 1 company (with significant intra-group debt), which is subsequently sold to a third party who undertakes to extinguish the intra-group debt?

Question 27

Question removed as information is collected through other means.

Question 28

If your entity is a private company that is the head entity of a consolidated group, did any of the consolidated group members (including the head entity) make a loan to the head entity's shareholders or their associates that are external to the consolidated group where all the following apply:

the loan is not compliant with the terms of section 109N
the loan was not repaid by the lodgment date
no statement has been provided to the recipient advising of a deemed dividend.

For more guidance, see:

Taxation Determination TD 2004/68 Income tax: consolidation: Division 7A: if a private company that is a head company or subsidiary member of a consolidated group makes a payment or a loan, or forgives a debt to a shareholder (or shareholder's associate) external to the consolidated group, does the single entity rule apply to the calculation of the distributable surplus under section 109Y of the Income Tax Assessment Act 1936?
Taxation Determination TD 2018/13 Income tax: Division 7A: can section 109T of the Income Tax Assessment Act 1936 apply to a payment or loan made by a private company to another entity (the 'first interposed entity') where that payment or loan is an ordinary commercial transaction?

Question 29

Has your entity been part of an arrangement with the description of either:

Subcategory 1: Your entity has subscribed for a controlling share of units in a unit trust (where they didn't own a controlling share in the prior year), which had a debt to another party that was the trust’s associate before the subscription and where the proceeds of the subscription were used to repay the debt?
Subcategory 2: Your entity has or had an associate unit trust which, in the current or 4 previous income years, transferred assets into a second unit trust relying on CGT rollover relief under Subdivision 126–G of Income Tax Assessment Act 1997 (ITAA 1997), and where the unit holdings in the second trust have subsequently changed to the extent that it is no longer your associate?

For more guidance, see Taxpayer Alert TA 2019/2Trusts avoiding CGT by exploiting restructure rollover .

Write the relevant subcategory number in the RTP Category C subcategory field.

Write the number 2 if both subcategories apply.

Question 30

Question removed.

Question 31

In the current, or 4 prior income years, has your entity, or an entity your entity controls, claimed a full credit or offset for foreign income tax paid where less than 100% of the related foreign income (including capital gains) is included in their Australian assessable income?

For more guidance, see, ATO Interpretative Decision ATO ID 2010/175 Foreign income tax offset: entitlement where foreign capital gain is only partly assessable in Australia.

Question 32

Question removed due to new advice and guidance, new questions 44 and 45 replace this question.

Question 33

Has your entity entered into any arrangements or schemes, or variation of arrangements, described in Taxpayer Alert TA 2020/2 Mischaracterised arrangements and schemes connected with foreign investment into Australian entities, where the structure used by foreign investors to invest directly into an Australian business has been mischaracterised?

In the Comments field, provide:

the foreign investor's identity
a brief description of what features, if any, aren't consistent with vanilla debt or equity investments
a brief explanation of how the investment provides the foreign investor with any direct exposure to the economic return from a particular business or assets exploited in the business.

Question 34

Has your entity entered into any arrangements, or variation of arrangements with a non-resident related party, as per descriptions in Taxpayer Alert TA 2020/3 Arrangements involving interposed offshore entities to avoid interest withholding tax and claimed a deduction for interest expenses under that arrangement?

Question 35

Has your entity either:

Subcategory 1: entered into an arrangement, or a variation of an arrangement, described in Taxpayer Alert TA 2020/4 Multiple entry consolidated groups avoiding capital gains tax through the transfer of assets to an eligible tier-1 company prior to divestment involving the transfer of assets within a MEC group and an ET-1 company leaving the MEC group or an ET-1 company anticipated to the leave the MEC group in future?
Subcategory 2: entered into an arrangement, or a variation of an arrangement, involving the transfer of assets within a MEC group and an ET-1 company leaving the MEC group or an ET-1 company anticipated to leave the MEC group in the future?
Subcategory 3: entered into an arrangement where 1 or more companies became an ET-1 company and there was a transfer of assets to any of those ET-1 companies?

Question 36

Has your entity entered into any arrangements, or variation of arrangements, described in Taxpayer Alert TA 2020/5 Structured arrangements that provide imputation benefits on shares acquired where economic exposure is offset through use of derivative instruments, and obtained imputation benefits relating to a parcel of Australian shares it holds (either directly or indirectly) where it has offset its economic exposure to those shares, or an Australian equities index, through the use of derivative instruments?

Question 37

Question removed due to legislative changes.

Question 38

Question removed.

Question 39

Has your entity made payments to an entity that is a member of your entity's Division 832 control groups and those payments would, prior to the application of Subdivision 832-H, result in an income tax deduction in the current income year?

Disclose the outcome you have self-assessed using Practical Compliance Guideline PCG 2021/5 Imported hybrid mismatch rule - ATO's compliance approach.

Subcategory 1: white zone
Subcategory 2: green zone
Subcategory 3: blue zone
Subcategory 4: yellow zone
Subcategory 5: amber zone
Subcategory 6: red zone 1
Subcategory 7: red zone 2
Subcategory 8: red zone, if you haven't applied PCG 2021/5.

Write the relevant subcategory number in the RTP Category C subcategory field.

In the Comments field, provide:

if the arrangement rating is red or amber, the reason the arrangement falls in that zone
if subcategory 8 applies, the reason you didn't apply the PCG.

Question 40

Has your entity entered into any arrangement with a related overseas entity as described in Taxpayer Alert TA 2021/2 Disguising undeclared foreign income as gifts or loans from related overseas entities, involving the inflow of funds to Australia as a gift or an advance of funds by way of a loan? If the advance of funds was by way of a loan, disclose the arrangement only where one or more of the following applies:

there has been no repayment of the loan
the repayments made were less than the interest incurred
the loan has been refinanced to the same related overseas entity or an associate.

Question 41

During the year, did your entity:

enter into an arrangement, or variation of an arrangement, as described in Taxpayer Alert TA 2022/2 Treaty shopping arrangements to obtain reduced withholding tax rates
obtain a reduced withholding tax rate under one of Australia's double tax agreements in relation to royalty or unfranked dividend payments arising from an arrangement, or variation of an arrangement, described in TA 2022/2 entered into on or after 1 July 2021.

Question 42

Has your entity treated global intangible low-taxed income (GILTI) as 'subject to foreign income tax' in the United States under section 832–130 of the Income Tax Assessment Act 1997?

For more guidance, see, Taxation Determination TD 2022/9 Income tax: is section 951A of the US Internal Revenue Code a provision of a law of a foreign country that corresponds to sections 456 or 457 of the Income Tax Assessment Act 1936 for the purpose of subsection 832-130(5) of the Income Tax Assessment Act 1997?.

In the Comments field please provide the:

amount of GILTI your entity has used to reduce the amount of its deduction/non-inclusion mismatches
amount of GILTI your entity has treated as dual inclusion income
subsection of section 832–130 your entity treated GILTI as 'subject to foreign income tax' in the United States, subsection 832–130(5), subsection 832–130(1) or both.

Question 43

Has your entity participated in any arrangements where the profits of a private company have been accessed in a tax-free form (that is, without an additional tax liability) by arranging for the profits to be passed to your entity or another participant through an interposed holding company using an arrangement, or variation of an arrangement, described in Taxpayer Alert TA 2023/1 Interposition of a holding company to access company profits tax-free?

Question 44

If your entity has any international related party Intangibles Migration Arrangements that involve a Migration of intangible assets in the current income year (within the meaning set out in paragraph 3 of Practical Compliance Guidance PCG 2024/1 Intangibles migration arrangements), and the Migration arrangement is not an Excluded Intangibles Arrangement (see paragraph 39 PCG 2024/1) disclose the risk rating you have self-assessed under Table 1 of the Risk Assessment Framework in PCG 2024/1 for the 3 most material Migration arrangements.

If in the current year, your entity has entered into one or more Migration arrangements with a higher risk rating under Table 1 of the Risk Assessment Framework than the 3 most material arrangements disclosed, you must also disclose each of those other arrangements.

Include each arrangement as a separate disclosure on the RTP schedule.

Materiality is determined using the instructions to question 17 of the International dealings schedule (IDS).

If you're making a disclosure in question 17 of the IDS or in the restructures section of your local file short form lodgment for the current year regarding a restructuring event or new arrangement which is also an Intangibles Migration Arrangement (within the meaning of PCG 2024/1), you can refer to that as one of your disclosures and make the relevant reference in the comments section.

Write the relevant subcategory number in the RTP Category C subcategory field:

Subcategory 1: Green (lower risk)
Subcategory 2: Blue (lower to medium risk)
Subcategory 3: Amber (medium risk)
Subcategory 4: Red (higher risk)
Subcategory 5: White Zone
Subcategory 6: high risk, if you have not applied PCG 2024/1.

Note: if an Intangibles Migration Arrangement has been disclosed in question 17 of the IDS or in the restructures section of your local file short form lodgement for the current year, and you refer to that disclosure in your RTP schedule you don't need to provide the below details to the extent you have already disclosed them.

For the 2025 year only, if you're not lodging your local file short form 2025 together with the lodgment of your tax return 2025, note that you will disclose the information we require in the RTP schedule about the arrangement in your short form 2025 by the local file short form due date.

For each arrangement you disclose, include in the Comments field:

a summary of each arrangement, including the type of arrangement (for example, a sale or licence) and the entities involved
a summary of the intangible assets involved in each arrangement including a summary of the key connected DEMPE activities
an indication of whether the arrangement has been disclosed in question 17 of the IDS or restructures section of your local file short form lodgement for the current income year.

Question 45

Other than Excluded Intangibles Arrangements (as defined in paragraph 39 of Practical Compliance Guidance PCG 2024/1 Intangibles migration arrangements), if your entity has any international related party Intangibles Migration Arrangements in the current year that didn't involve a Migration of intangible assets in the current year (within the meaning set out in paragraph 3 of PCG 2024/1), disclose whether there is any connection between those arrangements and any prior Migration of intangible assets held by your entity in the last 5 years?

Write the relevant subcategory number in the RTP Category C subcategory field.

Subcategory 1: Yes – one or more current arrangements has a connection with a prior Migration
Subcategory 2: No – none of the current arrangements have any connection with a prior Migration
Subcategory 3: Don’t know whether one or more current arrangements have a connection to a prior Migration
Subcategory 4: high risk, if you don't apply PCG 2024/1
Subcategory 5: Yes – one or more current arrangements has a connection with a prior Migration and you disclose this in question 45 of the RTP Schedule in the previous income year.

Note: you don't need to provide the below details where you already disclose them in the IDS or the local file, other than to specify where you disclose this information in the Comments field, if you disclose the:

prior Migration arrangement in question 17 of the IDS or if
the current Intangibles Migration Arrangement is a new arrangement or restructuring event you enter into during the current year in the restructures section of your local file short form lodgment this year.

For the income year 2025 only, if you're not lodging your local file short form 2025 together with the lodgment of your tax return 2025, note that you will disclose the information we require in the RTP schedule about the arrangement in your short form 2025 by the local file short form due date.

If Subcategory 1 applies, in the Comments field provide for both the current arrangement and any connected past Migration of intangible assets:

provide a summary of each arrangement, including type of arrangement (for example, sale or licence) and the entities it involves
provide a summary of the intangible assets you involve in each arrangement including a summary of the key connected DEMPE activities
whether you disclosed the prior Migration arrangement in question 17 of the IDS or the local file short form, and the income year you made the disclosure
if you don't include certain details because you otherwise disclosed the information , provide details of the other disclosure (including the name of the form, question number and the income year).

Question 46

Has any entity in your ‘Division 832 control group(s)’ (as defined in section 832-205 of the ITAA 1997) made a payment(s) that:

was not wholly subject to foreign income tax in accordance with section 832-130 of the ITAA 1997 in the recipient country for whatever reason; and
either:
- the recipient was a controlled foreign corporation (CFC) for United States federal income tax purposes and the payer was a direct or indirect disregarded entity of that CFC for United States federal income tax purposes
- the payer and the recipient were direct or indirect disregarded entities of the same CFC for United States federal income tax purposes?

Disclose the subcategory that describes your entity’s current position.

Subcategory 1 – Your entity reviews the arrangements in your Division 832 control group(s) having regard to Taxation Determination TD 2024/4 Income tax: hybrid mismatch rules - application of certain aspects of the 'liable entity' and 'hybrid payer' definitions and identifies a hybrid payer in respect of the payment(s) made under the arrangement(s).
Subcategory 2 – Your entity reviews the arrangements in your Division 832 control group(s) having regard to TD 2024/4 and determines that an entity is not a hybrid payer in respect of the payment(s) made under the arrangement(s). This conclusion is based on reasons including an interpretation of the ‘liable entity’ definition in section 832-325 of the ITAA 1997 and/or the ‘hybrid payer’ definition in section 832-320 of the ITAA 1997 that is inconsistent with the Commissioner’s view in TD 2024/4.
Subcategory 3 – Your entity reviews the arrangements in your Division 832 control group(s) having regard to TD 2024/4 and determines that an entity is not a hybrid payer in respect of the payment(s) made under the arrangement(s). This conclusion is based on other reasons.

You must answer this question prior to consideration of the hybrid requirement in section 832-315 of the ITAA 1997 to the arrangement(s).

In the Comments field, provide:

the name and jurisdiction of tax residency of the payer
the nature of the payment(s) made by the payer
the total amount of the payment(s) made by the payer (including the currency in which the payment(s) were made)
the name and jurisdiction of tax residency of the recipient
the foreign tax classification (in all relevant jurisdictions) of the payer and the recipient
the name and jurisdiction of tax residency of the CFC (if different to the recipient)
an explanation of your arrangement(s).

Question 47

If your entity has entered into any restructure(s) in response to the debt deduction creation rules (DDCR) contained in Subdivision 820-EAA of the ITAA 1997 in the current income year, and your entity is a general class investor, inward investing financial entities or outward investing financial entities which has not made a choice to use the third party debt test under subsection 820-46(4) of the ITAA 1997 for the income year, disclose the risk rating you have self-assessed under Table 1 of the Risk Assessment Framework in Practical Compliance Guidance PCG 2024/D3 Restructures and the thin capitalisation and debt deduction creation rules - ATO compliance approach separately for each of the restructure(s).

In the Comments section, please also provide the following information separately for each of the restructure(s):

Identify and disclose the examples (if any) in PCG 2024/D3 you rely upon in making your self-assessment of your risk rating for the restructure
Provide a description of the restructure. In providing this description you can refer to and incorporate by reference the description of the restructure that you provided in the International Dealings Schedule or that you have provided in the restructures section of your local file short form lodgment. You're still required to identify and disclose the PCG 2024/D3 examples you relied on.

RTP Category C subcategory field:

Subcategory 1: White zone
Subcategory 2: Yellow zone
Subcategory 3: Green zone
Subcategory 4: Red zone.

The PDF schedule field accepts 3,000 characters or approximately 500 words. If you require you can attach additional information.

Continue to: Section D: Declaration and signature

Return to: Instructions to complete the RTP schedule 2025

QC103780