The ATO has deferred the requirement for large companies and corporate groups to lodge their Reportable tax position (RTP) until the 2020-2021 financial year. This has been done after consultation and support from private groups stewardship group.
Initially the RTP schedule was only applicable for public and foreign owned companies with incomes of at least $25 million, provided that the company is part of an economic group with a business income of at least $250 million. However, the recent draft also covers large private groups and corporates with the same income limit as public and foreign companies. The proposal also includes a self-assessment mechanism for affected companies.
The aim of the RTP schedule is to align private companies with public companies and multinational groups by providing more information for the ATO, which is part of the ATO’s “Justified Trust” mantra. This measure helps targeting risk review functions by focusing on more important issues.
The reportable tax position (RTP) schedule is a schedule for the company income tax return. It requires large businesses to disclose their most contestable and material tax positions.