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  • Guide to reportable tax positions 2016

    Who should use this guide?

    Use this guide and the Reportable tax position schedule instructions 2016 if we have notified you in writing that you must lodge the Reportable tax position schedule 2016 (NAT 74066).

    You may also use this guide to complete the Reportable tax position early disclosure form 2016 (NAT 74067).

    For the 2015–16 income year, we have contacted a small number of large market business taxpayers that we view as higher consequence to notify them that they must lodge the schedule.

    Higher consequence taxpayers are those in our 'higher risk' or 'key taxpayer' categories. For more information about higher consequence taxpayers, refer to Risk differentiation framework.

    You will not be asked to complete the schedule if you have entered into an annual compliance arrangement for income tax with us for the 2015–16 income year.

    For an explanation of terms used in this guide, refer to the definitions.

    Disclosing a reportable tax position (RTP)

    All material RTPs must be disclosed in the schedule.

    You do not need to disclose an RTP in the schedule if:

    • you have already applied to us for a private ruling that covers the RTP
    • you have already disclosed the position to be taken in your Company tax return 2016 on a Reportable tax position early disclosure form 2016 (NAT 74067)
    • the RTP is covered by an advance pricing arrangement (APA) or an application for an APA that has been accepted into our APA program.

    All disclosures of RTPs must be in writing.

    What is a reportable tax position?

    A reportable tax position (RTP) is one or more of the following:

    • Category A: a position that is about as likely to be correct as incorrect, or less likely to be correct than incorrect
    • Category B: a position in respect of which uncertainty about taxes payable or recoverable is recognised and/or disclosed in the taxpayer's financial statements or a related party's financial statements
    • Category C: a reportable transaction or event.
    Last modified: 01 Jul 2016QC 49276