This afternoon, the Senate Economics Legislation Committee (“the Committee”) tabled their report into the Tax Laws Amendment (Research and Development) Bill 2013 (“the Bill”). As it stands, the Bill proposes that companies with an aggregated assessable income of $20 billion or more are to be denied access the R&D Tax Incentives. The Bill is expected to save approximately $1 billion annually and apply to income years commencing on or after 1 July 2013. The Committee recommended that the Bill be […]
The Industry Research and Development Act 1986 requires all applications for registration to be received by the IR&D Board within 10 months of the end of your company’s financial year end. For example, a December year-end company must lodge its application by 31 October of the following year. A June year-end company must lodge its application by 30 April of the following year. The ATO tax return lodgement date for large and new companies is considerably less than 10 months and for smaller existing companies is greater […]
An Advanced Finding is a binding decision from Innovation Australia about the eligibility of a company’s activities under the R&D Tax Incentive. It operates similar to a private ruling request and has the intention to provide certainty for companies. Similarly, an Overseas Finding is a binding decision that relates to overseas activities and expenditure. There are specific rules surrounding the inclusion of overseas expenditure within a company’s Australian R&D Tax Claim. A company must seek approval to claim the overseas […]
Does the R&D refundable tax offset generate a franking debit in my franking account? Generally, a franking debit arises in your entity’s franking account when you receive a refund of income tax which includes a refunded amount from a tax offset. However, special rules ensure that the amount of R&D tax offset refunded is not immediately reduced as a result of the entity becoming liable to franking deficit tax. The franking debit that usually arises when a refund of income […]