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  • Introduction

    What's new?

    The requirement to lodge the schedule has been extended to Australian-owned private companies who have been notified by us they must lodge for the 2020–21 income year.

    The criteria for a position to be a Category B reportable tax position has changed. If your entity, in its financial statements, has recognised an uncertain tax position and/or disclosed a contingent liability (asset) this is a Category B reportable tax position.

    The materiality threshold provided in these instructions no longer applies to Category B reportable tax positions.

    We will no longer update Category C throughout the year.

    The following Category C questions have changed:

    • Question 7 no longer references Taxpayer Alert TA 2016/4
    • Question 14 requires the three most material arrangements to be disclosed, plus the highest risk arrangement, if not one of the three most material arrangements
    • Question 23 requires the three most material arrangements to be disclosed, plus the highest risk arrangement, if not one of the three most material arrangements
    • Question 24 now only has one subcategory outside those related to industry risk zones in Practical Compliance Guideline PCG 2019/1
    • All questions that ask for self-assessed ratings under practical compliance guidelines have now split the subcategory for disclosing a high-risk rating and not having applied the practical compliance guideline.

    Some Category C questions now require information to be provided in the Comments field:

    • Question 9
    • Question 13
    • Question 14
    • Question 19
    • Question 21
    • Question 22
    • Question 23

    We have added several Category C questions:

    • Question 27 – payments under a structured arrangement (LCR 2019/3 and PCG 2019/6)
    • Question 28 – private company consolidated group heads and loans to shareholders or associates (TD 2004/68 and TD 2018/13)
    • Question 29 – trusts avoiding CGT by exploiting restructure rollover (TA 2019/2)
    • Question 30 – private companies with trustee shareholders (TD 2019/14)
    • Question 31 – foreign income tax credits (ATO ID 2010/175)
    • Question 32 – non-arm’s length arrangements and intangible assets (TA 2020/1)
    • Question 33 – mischaracterised arrangements and schemes connected with foreign investment in Australian entities (TA 2020/2 (PDF, 59.4KB)This link will download a file)
    • Question 34 – arrangements involving interposed offshore entities to avoid interest withholding tax (TA 2020/03)
    • Question 35 – the transfer of assets in a multiple entry consolidated group (TA 2020/4)
    • Question 36 – arrangements that provide imputation benefits on shares acquired where economic exposure is offset through use of derivative instruments (TA 2020/05)
    • Question 37 – the arm's length debt test for thin capitalisation (PCG 2020/7)
    • Question 38 – newly published practical compliance guidelines.

    Who needs to complete the schedule?

    You need to complete the schedule if your entity is:

    • lodging a company tax return for the entire year (12 months or more)
    • either  
      • a public company or a foreign-owned company with total business income of either  
        • $250 million or more in the current year
        • $25 million or more in the current year and part of a public or foreign-owned economic group with total business income of $250 million or more in the current year.
         
      • a private company and received a notification from us to lodge the schedule with its 2021 tax return.
       

    If your entity meets the criteria, you need to lodge the schedule even if it has no disclosures. You may still need to lodge the schedule even if your entity doesn't meet the criteria. We will notify you if this is the case.

    We have provided examples to help you:

    See also:

    Exceptions to lodgment requirement

    You are not required to lodge the schedule if your entity:

    • isn't required to lodge a company tax return for the income year (the RTP schedule is a schedule to the company tax return).
    • has an income tax annual compliance arrangement (ACA) with us for the relevant income year. Under this, it agreed to provide full and true disclosure and ongoing dialogue of all material tax matters, including any positions that fall within any reportable tax position category.

    If you are uncertain if your entity is required to lodge the schedule you can email ReportableTaxPosition@ato.gov.au

    Positions you need to disclose

    You only need to disclose Category A positions that exceed your entity's materiality amount.

    All Category C positions must be disclosed in the schedule.

    If your entity is the head of a tax consolidated group, you need to disclose positions that meet the requirements to be a reportable tax position under categories A, B and C taken by the head entity or any of its subsidiary group members.

    Completing the schedule allows you to make informed decisions about positions your entity has taken or is considering taking.

    See also:

    What you must report on your entity's tax return

    If you are required to lodge an RTP schedule, you must answer Yes to item 25 of the Company tax return 2021.

    Last modified: 25 Aug 2021QC 65144