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  • Section D: Category C reportable tax positions

    This section provides an explanation of the fields in section D and must be read in conjunction with the instructions for answering individual Category C questions.

    Did you have any Category C reportable tax positions (RTPs) for the 2016–17 income year?

    If you do not have any Category C RTPs that you must disclose on the schedule (for example, you have used the early disclosure form), select No from the drop-down box. You may then print and sign the schedule.

    If you have one or more Category C RTPs that you are disclosing on the schedule, select Yes from the drop-down box and How many reportable tax positions (RTPs) are you reporting? will appear.

    How many Category C reportable tax positions (RTPs) are you reporting?

    Type the total number of Category C RTPs you are reporting in How many Category C reportable tax positions (RTPs) are you reporting? The correct number of RTPs will appear based on the number you type. You can disclose up to 100 Category C RTPs in the schedule.

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

    RTP Category C is updated throughout the year. We recommend you use the electronic version of this document to ensure that you are reporting on the most up to date list of RTP Category C questions.

    RTP Category C questions

    Enter the number of Category C RTPs that you are disclosing in this field.

    We consult on the wording of Category C questions two times per year. Feedback on the wording of the current Category C questions can be emailed to ReportableTaxPosition@ato.gov.auThis link opens in a new window

    RTP Category C subcategory

    Where a question requires you to enter a subcategory, enter the relevant subcategory in this field.

    Have you discussed this position with the ATO?

    If you have discussed the RTP with the ATO, select Yes from the drop-down box in have you discussed this position with the ATO.

    If you had not, select No from the drop-down box.

    Optional comments

    You can disclose additional information relating to the individual Category C position in the Optional comments field. There is no requirement to complete this field.

    This schedule will allow you to type up to 3,000 characters (approximately 500 words) in this field. You also can attach additional information.

    RTP Category C questions

    You need to consider each Category C question and disclose each Category C RTP in the way specified in this table.

    You have to answer yes to an RTP Category C question if your arrangement is covered by the question, even if:

    • you do not consider a tax benefit arose from the arrangement
    • you do not consider that the arrangement is contrived or artificial
    • there is an observable third party market or long standing practice for this arrangement
    • your arrangement is different to the examples provided in the relevant taxpayer alert.
    RTP category C questions and information

    Category C RTP

    Question on the RTP schedule

    Do you have to answer this question?

    How to disclose this RTP

    1

    Did you claim a deduction under section 25-90 of the Income Tax Assessment Act 1997 (ITAA 1997) that was incurred in earning income that is non-assessable and non-exempt under both section 23AH of the Income Tax Assessment Act (ITAA 1936) and section 768-5 of the ITAA 1997?

    Refer to Taxation Determination TD 2016/6 for further guidance.

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 1 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    2

    Did you fund a special dividend or a share buy-back through an equity raising event at a similar time, where the arrangement is a type of arrangement or variation of an arrangement described in Taxpayer Alert TA 2015/2?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 2 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    3

    Have you entered into any arrangement(s) or variation of an arrangement described in Taxpayer Alert TA 2015/5 involving the use of offshore entities which source goods (procurement hubs)?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 3 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    4

    Did you recognise (in the current or last four years) any internally generated intangible assets or revalue an intangible asset(s) for the purposes of your thin capitalisation calculations using an arrangement or variation of an arrangement described in Taxpayer Alert TA 2016/1?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 4 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    5

    If you are a significant global entity as defined by section 960-555 of the ITAA 1997, have you entered into a restructure affecting any entities making supplies into Australia after 11 December 2015?

    Refer to Law Companion Guideline LCG 2015/2 for further guidance.

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 5 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    6

    Have you entered into a transaction(s) involving related party foreign currency denominated finance with related party cross currency interest rate swaps using an arrangement or variation of an arrangement described in Taxpayer Alert TA 2016/3?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 6 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    7

    Have you entered into any arrangement(s) or variation of an arrangement described in Taxpayer Alert TA 2016/4 involving cross-border leasing of mobile assets where related legal entities are interposed between the foreign owner and Australian operator?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 7 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    8

    If you are an Australian income tax consolidated group, do you have an offshore permanent establishment which has allocated expenses associated with an intra-Australian group transaction where the circumstances of the arrangement are similar to the circumstances in Taxpayer Alert TA 2016/7?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 8 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    9

    If you have related party dealings involving a marketing hub arrangement(s), disclose the outcome you have self-assessed in accordance with Practical Compliance Guidelines PCG 2017/1:

    • Subcategory 1: white zone
    • Subcategory 2: green zone
    • Subcategory 3: blue zone
    • Subcategory 4: yellow zone
    • Subcategory 5: amber zone
    • Subcategory 6: red zone or have not applied PCG 2017/1

     

    You have to answer this question if your tax year ended on or after 31 December 2017

    Record 9 in RTP Category C question field on section D of the RTP form.

    Record the subcategory number of your RTP in the subcategory box.

    You will need to repeat this process for each of your marketing hub arrangements. Each arrangement will require a separate RTP Category C question 9 disclosure.

    10

    Have you excluded from your thin capitalisation calculations of debt capital (in the current or last four years) any value of a ‘debt interest’ that has been treated wholly or partly as equity under accounting standards using an arrangement or variation of an arrangement described in Taxpayer Alert TA 2016/9?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 10 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    11

    Are you currently involved in a cross-border round robin financing arrangement or variation of an arrangement described in Taxpayer Alert TA 2016/10?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 11 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    12

    Did you enter into or continue to participate in an arrangement involving a corporate tax entity and a flow-through trust with common (or substantially common) ultimate owners, where the corporate tax entity makes payment(s) to the flow-through trust entity where the arrangement is a type of arrangement or variation of an arrangement described in Taxpayer Alert TA 2017/1?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record12 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    13

    Have you entered into transactions involving activities registered under the R&D tax incentive using an arrangement or variation of an arrangement described in Taxpayer Alert TA 2017/3?

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 13 in RTP Category C question field on section D of the RTP form.

    Leave subcategory field blank.

    14

    If you have financial arrangement(s) involving cross border related party debt funding, disclose the outcome you have self-assessed in accordance with Schedule 1 of the Practical Compliance Guideline PCG 2017/D4.

    • Subcategory 1: white zone
    • Subcategory 2: green zone
    • Subcategory 3: blue zone
    • Subcategory 4: yellow zone
    • Subcategory 5: amber zone
    • Subcategory 6: red zone or if you have not applied PCG 2017/D4

     

    You have to answer this question if your tax year ended on or after 1 July 2017

    Record 14 in RTP Category C question field on section D of the RTP form.

    Record the subcategory number of your RTP in the subcategory box.

    15

    If you claimed deductions for exploration expenditure, disclose whether your governance and/or claims have been reviewed under one of the following subcategories:

    Subcategory 1: a registered company auditor, or the ATO has performed the agreed upon procedure within the past year, and there has been no material change to your policies and procedures, or application of these.

    Subcategory 2: the ATO has conducted a review of your exploration claims in the past year and provided a low risk rating, and there has been no material change to your policies and procedures, or application of these.

    Subcategory 3: None of the above apply.    

    Refer to Agreed Upon Procedures: Applying the Practical Compliance Guideline PCG 2016/17 ATO compliance approach – exploration expenditure deductions

    You have to answer this question if your tax year ended on or after 30 June 2017

    Record 15 in RTP Category C question field on section D of the RTP form.

    Record the subcategory number of your RTP in the subcategory box.

    Do not record subcategory 1 until the Agreed Upon Procedures: Applying the Practical Compliance Guideline 2016/17 – exploration expenditure deductions is published on our website.

    Last modified: 11 Feb 2019QC 50949