Base metal explorer takes up provision for repayment of disputed R&D Tax Offset

September 27th, 2019 disputed R&D Tax Offset

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

The report notes that:

  • the finding was received in January 2019, and that an independent review is being conducted of the finding. Independent reviews are available to companies under the current compliance continuum where activities are found to be ineligible;
  • Argent Minerals Limited and the ATO have agreed to a payment arrangement whereby the company will make nominal $5,000 monthly payments for an interim review period until AusIndustry has completed its review. Findings made by AusIndusry are binding on the ATO;
  • Argent Minerals Limited remains of the view that its activities are eligible, and intends to pursue dispute of the adverse finding. The company has also noted in its report the recent Federal Court ruling in favor of Moreton Resources, indicating that they expect this ruling may have some impact on the internal review of Argent Minerals Limited’s activities.

The above is a timely reminder that R&D Claims must be compiled and assessed with care, and that claimants should consider guidance material published by AusIndustry and the ATO on R&D Tax Compliance.

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