The AFR has reported this week that leading technology companies (including Atlassian, Airtasker, Canva and Deputy, among others) have sent a letter to commissioner of taxation, Chris Jordan. The letter reportedly includes an offer to convene a workshop with the ATO to “improve the understanding of software innovation in the tax office and, conversely, address any concerns the ATO has about software related claims”.
This letter follows concerns around the eligibility of software development Activity under the R&D Tax Incentive which were highlighted over the past year during the Senate select committee on financial technology.
These concerns have led to calls in some areas of the media that a new programme to support investment in software development be introduced, or that changes be made to the current R&D Tax Incentive to specifically clarify its applicability to software.
Swanson Reed’s position on this matter is broadly: