Is your R&D tax incentive refund claim at risk?

Are you uncertain about the risks of your R&D Tax Incentive claim? Not sure whether you got it right?

Ausindustry and the ATO target risky R&D Tax Incentive claims, and can sometimes make you repay a claim years after you made it.

The ATO and AusIndustry have flagged that a number of sectors including information technology, agriculture, financial services, mining and property, will be the focus of future compliance activities around the incentive.

The ATO has said; Where a claimant of an R&D tax offset is subject to [an] audit or [a] review, they will be invited to provide further information. When the claimant is unable to substantiate the R&D claim they have made, the ATO would deny it. Where the ATO denies an R&D claim, the claimant has the right to have the decision reviewed. In the first instance, this is by way of objection, and if the claimant chooses, through the courts.”

Although there is still only a small chance (<10%) that you will be reviewed in any given year, it is worth keeping in mind that of those companies that get reviewed, almost all are found to be totally or partially ineligible. This is irrespective of their tax agent or R&D consultant.

R&D Certainty can help you by removing the doubt surrounding the eligibility of your claims by undertaking an assessment of your prior claims and assisting you with managing any risks that are identified. Of equal or even more importance is the fact that we will ensure that you have an R&D Plan that will help you and your team undertake future activities that can be successfully claimed under the program risk free.

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