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Australia Issues Notice on Reportable Tax Position Schedule for the 2018 Income Year — Orbitax Tax News & Alerts

On 16 October 2018, the Australia Taxation Office issued a notice on the reportable tax position (RTP) schedule for the 2018 income year. The RTP schedule requires the reporting of:

  • Uncertain tax positions in the income tax return (Category A), including positions that are about as likely to be correct as incorrect, or less likely to be correct than incorrect;
  • Tax uncertainty in financial statements (Category B), including positions in respect of which uncertainty about taxes payable or recoverable is recognized and/or disclosed in the taxpayer's financial statements or a related party's financial statements; and
  • Reportable arrangements identified in guidance material released by the ATO (Category C), which must be disclosed if answering yes to any of the RTP Category C questions.

For income years ending on or after 30 June 2018, the RTP schedule requirements have been extended to include all companies in public or international economic groups with a turnover greater than AUD 250 million.

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Reportable tax position schedule: notifications and reminders

We have completed the Notification and Reminders process so impacted taxpayers should now be aware of their obligation to lodge the Reportable tax position (RTP) schedule for the 2018 income year.

The Notifications were sent throughout 2017 to notify selected public and multinational clients of their requirement to lodge the RTP schedule for the 2018 income year. We elected to give clients as much notice as possible to enable them to consider their positions throughout the income year.

We are conscious the lead time between receiving a notification and lodging their RTP is significant and therefore supplemented the process by sending reminders to taxpayers lodging the RTP schedule with their 2018 income tax returns in July 2018.

If you don't need to lodge a company tax return for the 2018 year (for example you were a subsidiary member of a consolidated group for the full year), you can disregard our reminder. This is because the RTP schedule is a schedule to your tax return, and is only required once the tax return is lodged.

If you are a part of a listed or multinational business and are unsure of your requirement to lodge an RTP schedule for the 2018 income year, email us at reportabletaxposition@ato.gov.au

In early 2019 we will send reminders to early balancing taxpayers, who are required to lodge the RTP schedule with their 2019 income tax return.

Helpful hint: You do not need to print out, sign and scan the RTP schedule if you are lodging it through the business or tax agent portals – you can simply save the pdf and attach it to the portal message.

See also:

Guide to reportable tax positions 2018