Show download pdf controls
  • Category A and B positions relating to losses

    Prior-year losses deducted or applied

    A position includes statements made in your company income tax return that you have deducted prior-year tax losses or applied prior-year unapplied net capital losses to reduce the net capital gain included in your assessable income.

    Only material positions must be disclosed. For example, a Category A RTP will be material where the potential adjustment, should the position not be sustained, is equal to or exceeds your materiality amount.

    You must also consider whether you have a material Category B RTP that must be disclosed.

    Prior-year losses carried forward

    A statement made in your company income tax return that you have carried forward prior-year tax losses or prior-year net capital losses to later income years should not give rise to a potential adjustment – in this instance, the position is not material and is not required to be disclosed.

    Current year loss position

    Material positions can arise when you are in a loss year. You can have a potential adjustment but no change to your income tax liability for that income year.

    You must consider whether you have material positions that must be disclosed when you are in a loss year.

    Last modified: 23 Jul 2020QC 58955