XPED LIMITED has announced to the ASX that the company has received notice from AusIndustry of a finding assessing certain registered activities as ineligible under the requirements of the R&D Tax Incentive for the FY18 period.
XPED LIMITED had previously announced in the company’s interim report for the half year ended 31 December 2018 that a Refundable R&D offset of $1,634,607 was received in respect of the Technology Development segment of the business, which is focused on development of Internet of Things based software and hardware solutions.
The ASX Announcement included a statement that XPED LIMITED was committed to appealing the finding, and believed that the appeal would be successful.
This situation highlights the scrutiny that is currently placed on software R&D Claims, and the care that must be taken when registering software development activities under the R&D Tax Incentive.
AusIndustry released updated guidance on the eligibility of software development activities in February 2019 which claimants should ensure they review.