Argent Minerals Settles R&D Tax Dispute Allowing Some Of Previously Disputed Claim To Be Deemed Eligible

May 26th, 2020

Argent Minerals Limited has previously disclosed a liability in the company’s 2019 annual report for “R&D Claims repayable” of approximately $1.4M. This liability was in respect of R&D Tax Offsets for the FY16 and FY17 periods that AusIndustry had found relate to ineligible activities.

Argent Minerals Limited had also reported that the company remained of the view that its R&D activities were eligible, and intended to pursue dispute of the adverse finding.

The company has announced to the ASX over the past week that week that:

  • The company has now settled the dispute with AusIndustry, which was acting as a delegate of Innovation and Science Australia;
  • As a result of the settlement, around $350,000 worth of previously disputed claims have now been deemed as eligible;
  • Argent Minerals Limited remains in negotiations with the Australian Tax Office to develop a repayment scheme for any amounts the company still owes;
  • The company thanked AusIndustry and the ATO for their support during the process.

The above is somewhat of a good outcome for the company, considering that when companies’ activities reach the stage of a negative finding, compliance proceedings are usually very advanced, and difficult to settle or overturn.

This is however a timely reminder that R&D Claims must be compiled and assessed with care, and that claimants should carefully adhere to R&D Tax Compliance guidance published by AusIndustry and the ATO.

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