The recent AAT decision, Vision Intelligence Pty Ltd and Innovation Australia [2013] AATA 527 was a taxation appeals case that related to a taxpayer’s calculation of expenditure items within its R&D tax claim submission and the possible penalties the ATO may impose on that taxpayer for recklessness in the calculation. This case is relevant to companies that wish to reassess their ‘risk profile’ and ‘reasonable care’ position with respect to the R&D Tax Incentive. Background Vision Intelligence (or the Applicant) engaged a management […]
Last week, AusIndustry released version 5 of the R&D activities form. The application now requires more information from the Applicant regarding the nature of core and supporting activities alongside additional administrative information. Whilst the new requirements will require more time and input to complete, Swanson Reed views the changes as positive since Applicants must explicitly assert how their activities are eligible under the legislation. Swanson Reed recommends that all applicants spend sufficient time addressing the requirements of the expanded application […]
The recent AAT decision, Mount Owen Pty Ltd and Innovation Australia [2013] AATA 573 was a well resourced AAT case that related to the R&D activities conducted by a large coal producer.  It is relevant to companies that conduct R&D activities in a production environment. It is important to note that although the case references the Applicant as Hunter Valley Coal Corporation Pty Ltd, a then subsidiary of BHP Ltd, BHP had sold this company to another mining company and had no […]
Australia is one of the world leaders in innovation and R&D, but our current tax system fails to reflect the challenges of a competitive global economy, especially as it relates to domestic biotechnology and manufacturing. Recently, the Abbott Government pledged to explore ‘patent box’ in Australia. The patent box Australia  concept has already been adopted by many European countries and is currently before Congress in the U.S. These schemes provide reduced tax rates on income attributable to patented IP. The Patent Box will […]