R&D Tax Incentive – Have you thought about your 2016/17 claim?
The deadline for lodgement of R&D Tax Incentive claims for the 2016/17 financial year is fast approaching.
Companies wishing to claim the refundable/non-refundable tax offsets available under the R&D Tax Incentive Program must register R&D activities with AusIndustry within 10 months of the end of the relevant year of income. For activities conducted in the financial year ended 30 June 2017, this registration deadline is 30 April 2018 – now just 3 months away.
Failure to lodge an application by the deadline will mean any R&D tax benefits that would otherwise be available for that year will be lost. Before lodging a claim, companies should also ensure that they have maintained appropriate records to demonstrate that they comply with all legislative requirements – in particular that they have performed a systematic program of work involving experimental activities. The importance of documentation has been continually stressed by AusIndustry and the ATO, and a lack of appropriate documentation is an area where a lot of companies come unstuck. Notably, the AAT has found that the registered activities of a particular applicant were not core R&D activities, and therefore ineligible under the R&D tax incentive programme (AAT flags importance of contemporaneous documentation to evidence R&D activity).
If your company has invested more than $20,000 in experimental activities to create a new product or service during the 2016/17 year, and you haven’t yet lodged your application with AusIndustry, call BSI Innovation today on (02) 9126 9100 to discuss your eligibility for the R&D Tax Incentive.