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BAE Systems Australia Pty Ltd v Commissioner of Taxation Australia [2008] FCA 18

March 13th, 2014

In the matter of BAE Systems Australia Pty Ltd v Commissioner of Taxation, the Federal Court of Australia (FCA) reviewed whether the applicant, BAE Systems, is entitled to deductions under s 73B of the Income Tax Assessment (ITA) Act 1936.

Background:

The applicant taxpayer appeals from the Commissioner’s disallowance of objections made by the applicant in respect of amended income tax assessments issued by the Commissioner for the years of income ending on 31 March of 1993, 1994 and 1996.
The deductions claimed are for expenditure incurred in each of the relevant years of income in carrying on R&D activities in respect of the Jindalee Operational Radar Network Project (‘Jindalee Project’).
The Commissioner accepted that the expenditure was incurred in respect of R&D but alleges that the applicant is not entitled to the deduction because the R&D work was carried out “on behalf of” another person within the meaning the meaning of s 73B(9) or the applicant was not “at risk” in relation to the expenditure within the meaning of s 73CA of the ITA Act.

Decision:

The court ordered that the motion filed by BAE Systems be dismissed.
The Commissioner concludes that the “overall effect” of these provisions was that the applicant did not bear any financial risk, or at least any material financial risk, associated with the R&D.

Click here to view the Bae Systems Australia (NSW) Pty Limited v Commissioner of Taxation for the Commonwealth of Australia (2008) case.

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 Trustindex verifies that the original source of the review is Google.  I have been using Swanson Reed for my clients for more than a decade.  Having a specialist firm that can provide practical and commercial advice that produces real outcomes is very important and we have received great feedback from our clients. Highly recommended.
  
 
 
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      Posted on Google  
   
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 Trustindex verifies that the original source of the review is Google.  
  
 
 
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 Trustindex verifies that the original source of the review is Google.  The Swanson Reed team have provided our company with exceptional professional advice and assistance for all of our R&D claims for many years - have always achieved great results with excellent value for their services.
  
 
 
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   Payam Toloo  
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 Trustindex verifies that the original source of the review is Google.  Damian Smyth and his team are very helpful, supportive and experts in their field of R&D Tax claims. I'm always happy with the work they do and been a customer of their for over 5 years.
  
 
 
      Posted on Google  
   
   Melissa Doddy  
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 Trustindex verifies that the original source of the review is Google.  The Team at Swanson Reed are very experienced R&D Tax Advisors and gave us ongoing support with all of our R&D Claims, the consultants ensured we were always working with current legislative guidelines, gave us assistance with compiling technical and government documentation and went out their way to ensure they were with us for the entire process from beginning to end.  Highly recommended to anyone who needs assistance with working through what can at times be a daunting process.
  
 
 
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   Gary Watson  
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 Trustindex verifies that the original source of the review is Google.  We can highly recommend Swanson and Reed as an R & D accountant. We have worked with them for several years now as they make our R & D claim so easy and communicate quickly with both us and our accountant.
  
 
 
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BAE Systems Australia Pty Ltd v Commissioner of Taxation Australia [2008] FCA 18

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