New guidance documents published by AusIndustry:
- specific guidance for large R&D Tax Incentive claimants, outlining how AusIndustry approaches and manages compliance risks for large businesses
- 'the R&D Tax Incentive: A Short Guide to Interpretation' sets out how AusIndustry interprets the key elements of the definition of ‘R&D activities’. It is designed to assist companies understand and assess whether their work is eligible
Proposed exclusion for certain large companies:
The proposed amendment changing the R&D Tax Incentive to exclude companies exceeding $20 billion aggregate assessable income will be introduced to the Senate having received positive endorsement from a Senate Economics Committee. The Committee made minor recommendations, which are currently being considered.
Read KPMG's submission as part of this process
Administrative Appeal Tribunal (AAT) update:
The AAT has issued a decision limiting expenditure claimable under the previous R&D Tax Concession program for a particular taxpayer. The primary issue considered related to whether the expenditure claimed was 'directly in respect of' eligible R&D activities.
Additional considerations included the eligibility of plant, overseas and marketing/sales expenditure.
Whilst the case relates to the earlier tax concession program, it still provides useful insight into the current issues and interpretation by the AAT.
The R&D tax incentive has been operational for two years with increasing information to consider on how the program is administered.
Further information and guidance is expected so keep your eyes on DTN for updates, or contact your KPMG professional.