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Airtasker Provide Positive R&D Tax Update in FY22 Results

Airtasker had previously been associated with the “compliance crackdown” on R&D Tax Incentive Claims, particularly for software, after reports emerged in December 2018 that the company’s prior year claims were being disputed following ATO review.

Airtasker’s dispute came around the time of other reported R&D tax disputes whereby companies such as CBA and Newcrest made disclosure of reduction to previously lodged self assessed R&D claims.

Since this time, Airtasker has subsequently completed an ASX listing, and had provided an update to the ASX on the Refundable R&D Tax Offset Dispute within the FY21 results released August 2021:

• “The group is currently in dispute with the ATO in relation to its R&D Tax Offset incentive claimed for the years ended 30 June 2015 and 30 June 2016, which total $1,962,000. The balance of government grants provisioned as at 30 June 2021 has reduced compared with 30 June 2020, reflecting R&D Tax Offset incentive claims received by the group during the year ended 30 June 2021 in respect of the years ended 30 June 2017, 30 June 2018, 30 June 2019 and 30 June 2020, which were received by the group as an offset against the existing liability.”

A further update was provided in the company’s FY22 results released in August 2022:

• “During the year ended 30 June 2022, the Group and the ATO resolved their dispute regarding the Group’s research and development activities registered for the years ended 30 June 2015 and 30 June 2016. An amount of $709,000 comprising $643,000 R&D tax incentive liability reduction and $66,000 general interest charge reduction was credited to the income statement, representing the excess amount previously provided for. The Group is awaiting agreement of a payment plan with the ATO for the balance of $762.000.”
  

It is a positive outcome that the dispute was resolved, and that the company was able to continue to register R&D Activities for years subsequent to the those in dispute.

Stakeholders participating in the R&D Tax Incentive should look to assess and document activities in accordance with programme regulator guidance  as to minimise the likelihood of ending up in disputes. AusIndustry released new Software R&D Activity guidance around April 2022 and it is expected new ATO guidance will be released shortly.

Check out the Swanson Reed website for further information regarding applicable R&D AusIndustry regulations, and don’t hesitate to contact us.