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  • Section C: 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 RTPs for the 2017–18 income year?

    If you do not have any Category C RTPs that you must disclose on the schedule, select No from the drop-down box.

    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 Category C RTPs are you reporting? will appear.

    How many Category C RTPs are you reporting?

    Enter the total number of Category C RTPs you are reporting. The correct number of RTPs will appear based on the number entered. 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 number

    This field will be autocompleted.

    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 have not discussed this position with the ATO, then select No from the drop-down box.

    RTP Category C question

    Enter the Category C question number 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.au

    RTP Category C subcategory

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

    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.

    RTP category C questions and information

    Question on the RTP schedule

    Do you have to answer this question?

    How to disclose this RTP

    Question 1

    Did you claim a deduction under section 25-90 of the Income Tax Assessment Act 1997 (ITAA 1997) (or subsection 230-15(3) of the ITAA 1997 if you are a TOFA taxpayer) 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 5

    Question removed as it is now covered by the International Dealings Schedule

     

     

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    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.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 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 schedule.

     

    Leave subcategory field blank.

    Question 13

    Have you claimed the R&D tax incentive using an arrangement or variation of an arrangement described in the subcategories below?

    • Subcategory 1: Taxpayer Alert TA 2017/2 (construction activities).
    • Subcategory 2: Taxpayer Alert TA 2017/3 (any business activities).
    • Subcategory 3: Taxpayer Alert TA 2017/4 (agricultural activities) .
    • Subcategory 4: Taxpayer Alert TA 2017/5 (software development activities).
    • Subcategory 5: More than one of abovementioned Tax Alert subcategories apply.
     

    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 schedule.

     

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

    Question 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 2017/4.

    • 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 2017/4

     

    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 schedule.

     

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

    Question 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 schedule.

     

    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.

    Question 16

    If you are an Australian income tax consolidated or multiple entry consolidated (MEC) group, have you entered into any arrangement(s) where a joining entity has become a subsidiary member of the group and any of the following subcategories apply to you?

    • Subcategory 1: the churning rule (in section 716-440 of the ITAA 1997) applies to deny certain cost setting rules
    • Subcategory 2: the churning rule (in section 716-440 of the ITAA 1997) did not apply solely because the disposing entity ceased to hold membership interests in the joining entity more than 12 months before the joining time.
     

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 16 in RTP Category C question field on section D of the RTP schedule.

     

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

     

    If both subcategories apply to you (where you have two separate positions), record subcategory 1.

    Question 17

    At any stage during your income year, did you have a cross border financing arrangement with a related party (including via back to back arrangements through third parties) where you claimed a tax deduction for interest or an amount in the nature of interest and interest withholding tax was not remitted because a withholding tax liability is not expected to arise within the next 18 months.

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 17 in RTP Category C question field on section D of the RTP schedule.

     

    Leave subcategory field blank.

    Question 18

    Did you claim a deduction under section 25-90 of the ITAA 1997 for costs in relation to debt interests incurred in deriving non-assessable non-exempt income under sections 23AI or 23AK of the ITAA 1936 or Subdivision768-A of the ITAA 1997?

    Refer to Taxpayer Alert TA 2009/9 for further guidance

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 18 in RTP Category C question field on section D of the RTP schedule.

     

    Leave subcategory field blank.

    Question 19

    If you have reached a formal settlement or other form of agreement with the ATO (for example you agreed to refinance, restructure, calculate income or deductions in a particular manner or meet specific time frames), that covers the current income year, do any of the following subcategories apply to you?

    • Subcategory 1: you did not meet one or more of the terms of the settlement /agreement in the current income year
    • Subcategory 2:  there had been changes in the relevant and material facts as disclosed in the agreement that apply to the current year
     

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 19 in RTP Category C question field on section D of the RTP schedule.

     

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

     

    If both subcategories apply to you (where you have two separate positions), record subcategory 1.

    Question 20

    Have you participated in any arrangement(s) or variation of an arrangement described in Taxpayer Alert TA 2018/1 involving the use of securities lending and derivative contracts where you or another participant in the arrangement have received franking credits?

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 20 in RTP Category C question field on section D of the RTP schedule.

     

    Leave subcategory field blank.

    Question 21

    Are you aware of any unamended mistakes or omissions in a tax return lodged by you (not previously disclosed to the ATO), within the last four years where the mistake or omission, if amended, would give rise to 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 years)
    • more than $5 million in losses (including capital losses)
    • where there is more than one mistake or omission in a particular tax return, the combined effect of all mistakes or omissions is more than $1.5 million in tax payable or $5 million in losses?
     

    You have to answer this question if your tax year ended on or after 30 June 2018.

    Record 21 in RTP Category C question field on section D of the RTP schedule.

     

    Leave subcategory field blank.

    Last modified: 02 Jul 2018QC 56109