Section C: Category C reportable tax positions

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.

This question applies to you if your income years ended on or after 30 June 2017.

Record 1 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2017.

Record 2 in RTP Category C question field on section C 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)?

This question applies to you if your income years ended on or after 30 June 2017.

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

Leave subcategory field blank.

Question 4

Did you recognise (in the current or four prior 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?

This question applies to you if your income years ended on or after 30 June 2017.

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

Leave subcategory field blank.

Question 5

Question removed as the information is collected through other means.

Not applicable for periods starting 1 July 2017.

 N/A

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?

This question applies to you if your income years ended on or after 30 June 2017.

Record 6 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2017.

Record 7 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2017.

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

Leave subcategory field blank.

Question 9

If you have related party dealings involving a hub arrangement(s), disclose the outcome you have self-assessed in accordance with the applicable schedule in the Practical Compliance Guidelines PCG 2017/1 for each hub arrangement you are involved in.

For offshore marketing hub arrangements:

• 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 Schedule 1 of the PCG 2017/1

For offshore non-core procurement hub arrangements:

• Subcategory 11: white zone
• Subcategory 12: green zone
• Subcategory 13: blue zone
• Subcategory 14: yellow zone
• Subcategory 15: amber zone
• Subcategory 16: red zone or have not applied Schedule 2 of the PCG 2017/1

This question covers:

• marketing hub arrangements where your income years ended on or after 31 December 2017, and
• offshore non-core procurement hub arrangements where your income years ended on or after 31 December 2018.

Where your income year ended before 31 December 2018, you have to consider and disclose your marketing hub arrangements but not your offshore non-core procurement hub arrangements.

Record 9 in RTP Category C question field on section C 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 four prior years) any value of a ‘debt interest’ that has been treated wholly or partly as equity under accounting standards? Refer to Taxpayer Alert TA 2016/9 for further guidance.

This question applies to you if your income years ended on or after 30 June 2017.

Record 10 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2017.

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

Leave subcategory field blank.

Question 12

In the current or four prior years, were you party to an arrangement that fragments an integrated trading business where, as a result of the arrangement, trading income has been re-characterised into more favourably taxed passive income? Refer to Taxpayer Alert TA 2017/1 for further guidance.

This question applies to you if your income years ended on or after 30 June 2017.

Record12 in RTP Category C question field on section C 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.

This question applies to you if your income years ended on or after 30 June 2017.

Record 13 in RTP Category C question field on section C 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 Schedule 1 of PCG 2017/4

This question applies to you if your income years ended on or after 1 July 2017.

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

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

Question 15

Question removed as the information is collected through other means.

Not applicable for periods starting 1 July 2017

N/A

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 did not apply because you did not satisfy the test in paragraph 716-440(1)(f) as the joining entity was majority owned by the control entity for less than 12 months.

Note that if the arrangement under which the entity joined the group commenced on or after 15 February 2018, then paragraph 716-440(1)(f)) applies to the sum of the total participation interests held by the control entity and its associates in the joining entity.

This question applies to you if your income years ended on or after 30 June 2018.

Record 16 in RTP Category C question field on section C 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.

This question applies to you if your income years ended on or after 30 June 2018.

Record 17 in RTP Category C question field on section C 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

This question applies to you if your income years ended on or after 30 June 2018.

Record 18 in RTP Category C question field on section C 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

This question applies to you if your income years ended on or after 30 June 2018.

Record 19 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2018.

Record 20 in RTP Category C question field on section C 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?

This question applies to you if your income years ended on or after 30 June 2018.

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

Leave subcategory field blank.

Question 22

If you have restructured out of any arrangements in the current or previous income year to which the Hybrid Mismatch rules applied or would have applied had the arrangement remained in place, disclose the subcategory that describes your current position:

• Subcategory 1: All of your restructured arrangements qualify as low risk under Draft Practical Compliance Guideline PCG 2018/7
• Subcategory 2: One or more of your restructured arrangements does not qualify as low risk under Draft Practical Compliance Guideline PCG 2018/7

Note: In considering whether the Hybrid Mismatch Rules would apply you must disregard dual inclusion income.

This question applies to you if your income years ended on or after 31 December 2018.

Record 22 in RTP Category C question field on section C of the RTP schedule.

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

Question 23

If you have financial arrangement(s) involving cross-border related party derivative transactions, disclose the outcome you have self-assessed in accordance with Draft Schedule 2 of the Practical Compliance Guideline PCG 2017/4DC1:

• 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 Schedule 2 of the PCG 2017/4DC1

This question applies to you if your income years ends on or after 31 December 2018.

Record 23 in RTP Category C question field on section C of the RTP schedule.

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

Question 24

If you have related party dealings involving an inbound distribution arrangement(s), disclose the risk zone you have self-assessed in accordance with Draft Practical Compliance Guideline PCG 2018/D8:

Subcategory 1: Low Risk

Subcategory 2: Medium Risk

Subcategory 3: High Risk or if you have not applied PCG 2018/D8

This question applies to you if your income years ended on or after 31 December 2018.

Record 24 in RTP Category C question field on section C 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 inbound distribution arrangements. Each arrangement will require a separate RTP Category C question 24 disclosure.