Formerly where a taxpayer returned a tax loss in an income year, the ATO had an unlimited period to review their affairs as the time limitations only started to run from when tax becomes due and payable. Recommendation 3.4 of the Review of Self Assessment (ROSA) applies from the 2004-05 income year and makes the period of review for loss and nil liability cases equivalent to the period for the ATO to amend assessments creating liabilities.
Recommendation 3.5 provides transitional arrangements for losses incurred prior to the 2004-05 income year providing relevant loss information is disclosed on 2004-05 returns. If the requirements around these arrangements are met, the ATO will have six years to review the prior loss years.
the TFN of the entities which incurred the losses;
income years in which the losses were incurred;
the amount of the losses;
the available fractions linked to those losses (for consolidated groups); and
the amount of concessional losses (for consolidated groups).
For entities not part of a consolidated group, the relevant loss information will be available from the 2004-05 tax return and the Losses schedule (where required).
The new schedule would be lodged only by the head company of a consolidated group where:
transferred tax losses carried forward at the end of the 2004-05 income year are greater than $100,000 (similar thresholds are applicable to the other losses schedules); and
more than $100,000 of those losses were contributed by a single entity.
The schedule will not be available to be lodged electronically. The ATO will provide the schedule for download from the ato.gov.au website. If extra pages are required, a second download will be available for head companies to provide details on all of the entities they are required to report on. The schedule will be lodged with paper lodged returns or lodged separately by those lodging returns electronically. Mailing addresses details will be provided at a later date.