What is considered a "tax risk" according to the ATO Green Book?

A "tax risk" according to the ATO Green Book refers to an uncertain tax position that may lead to disputes. This means that when a taxpayer engages in practices or adopts positions that are ambiguous or not clearly defined within the tax legislation, there is a potential for disagreement with the tax authority. This uncertainty can result in audits, challenges, or disputes regarding the proper tax obligations. The focus on uncertainty highlights the importance of understanding tax implications fully and ensuring compliance to mitigate potential disputes. By recognizing and assessing tax risks, both taxpayers and tax professionals can take proactive steps to manage these uncertainties and avoid conflicts with tax authorities.