ATO decision impact statements (DIS) are documents which seek to advise the community of the ATO’s view on the implications of a particular court or tribunal decision. The statement provides information for taxpayers and advisers.
The AAT decision of GQHC and Commissioner of Taxation (Taxation) [2024] AATA 409 was handed down in February 2024 and the ATO decision impact statement was published in April 2024.
The matter is complex, and broadly involves whether the ATO may have the power to deny the eligibility of self-assessed R&D Activities (which is usually within the jurisdiction of AusIndustry) in situations where AusIndustry cannot or has not determine the eligibility of the activities.
The case in question, GQHC, saw the AAT support the ATO’s view that it holds the authority to assess the eligibility of registered R&D activities, even when AusIndustry cannot or has not, made a binding finding. In its decision, the Tribunal concluded that the activities under scrutiny did not qualify as eligible R&D activities. In addition, implications of feedstock adjustment provisions were considered.
The ATO’s DIS on GQHC notes:
This AAT decision underscores the importance of maintaining detailed and contemporaneous records for companies seeking to claim the R&D tax offset. The ATO’s statement emphasises that such documentation is crucial for substantiating R&D claims and ensuring compliance with the eligibility requirements set forth in Division 355 of the Income Tax Assessment Act 1997.
The full Decision Impact Statement can be accessed through the ATO’s official website.
You can find the Decision impact statement at: GQHC and Commissioner of Taxation
Please get in touch with our office if you require assistance, would like to speak to someone about a potential claim, or check out our website for more information.