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Tax risks flagged to market

Typical information we need to review for your tax risks flagged to market.

Last updated 16 August 2022

Reportable tax positions (RTP)

Confirm whether you have a RTP as defined in the Reportable tax position schedule which is one or more of the following:

Errors or omissions

Advise if there are any errors or omissions in the tax returns (within the amendment period) that have not yet been amended or otherwise disclosed. If so, please provide details of each error or omission.

Research & development (R&D) tax incentive

Provide the following regarding the R&D tax incentive claimed for the review period:

  • the R&D tax incentive schedule working papers including      
    • a breakdown of the expenditure for each of the registered R&D activities
    • the calculation of the notional R&D deductions
  • a description of how expenditure is distinguished and apportioned between eligible and non-eligible R&D activities
  • details of any expenditure incurred to an associate, affiliate or connected entity
  • details of any R&D results disposed of, or payment received for the results of the R&D
  • details of any feedstock adjustments.

Hybrid instruments

Confirm whether you had any instrument on issue which is classified differently for accounting or income tax purposes in an offshore jurisdiction other than in Australia. If so, provide:

  • the legal agreement
  • a summary of the instrument features
  • how the instrument is treated by you and the counterparty for income tax purposes
  • indicate if your treatment is different for income tax purposes and accounting purposes.

Indicate if some of the responses have already been provided above.

Hybrid entities

Confirm whether you had:

  • any dealings with an international related party which is classified differently for income tax purposes in an offshore jurisdiction
  • any interests in an entity which is classified differently for income tax purposes in an offshore jurisdiction.

If so, provide the name of the entity and the classification offshore and in Australia.