ATO Guidance and Materials

New Guidance Relating to Feedstock Adjustments

February 9th, 2015

AusIndustry and the ATO have recently released joint guidance in relation to the calculation and disclosure of feedstock adjustments. The guidance clarifies that companies are able to “opt out” of claiming feedstock inputs if the benefit arising from claiming feedstock inputs as R&D expenditure is not commensurate with the compliance requirements for the corresponding feedstock adjustment. When claiming the R&D Tax Incentive, a company is required to make a feedstock adjustment if it supplies or uses products produced during its R&D activities. […]

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ATO ID 2010/74 Income Tax R&D tax concession: meaning of ‘primarily’ in paragraph 73B(14C)(c) of the Income Tax Assessment Act 1936

August 20th, 2014

Can the requirement in paragraph 73B(14C)(c) of the Income Tax Assessment Act 1936 ( ITAA 1936), that activities need to be carried on ‘wholly or primarily on behalf of the foreign company’ be met, where the relevant activities are not carried out by the eligible company solely on behalf of the foreign company? Yes. The requirement in paragraph 73B(14C)(c) of the ITAA 1936 can be met if the R&D activities are carried on chiefly or mainly on behalf of the foreign company. […]

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ATO ID 2010/37 Income Tax Deductions: tax indemnity payment

August 20th, 2014

Is a deduction available under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for a tax indemnity payment made to an investor pursuant to an obligation in a research and development syndicate (R&D syndicate) arrangement, if the giving of such indemnities and entering into such arrangements is a regular part of the taxpayer’s business operations as a developer/supplier of technological products and holding company? Yes, the taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 […]

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ATO ID 2009/107 Income Tax R&D tax concession

August 20th, 2014

Under section 73CA of the Income Tax Assessment Act 1936 (ITAA 1936), is a company ‘not at risk’ in respect of an amount of expenditure if: The company incurs the expenditure in an effort to comply with a contractual obligation to deliver a certain product; and when it is incurred, it can reasonably be expected that, as a result, the company will earn a fee under the contract at least equal to the amount of the expenditure; and that expectation is held […]

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