Home » News » New Federal court matter (May 2026) finds the occurrence of R&D Tax evasion schemes

New Federal court matter (May 2026) finds the occurrence of R&D Tax evasion schemes

A federal court case, with a judgement dated 28 May 2026 has declared that a respondent contravened s 290-50(1) of the TAA regarding several taxpayer schemes involving the R&D Tax Incentive.

The R&D Tax Incentive has been a focus of the TPB and ATO in recent years, with several published matters involving the promotion and misuse of the incentive to make aggressive or invalid claims.

Substantial penalties can be imposed and should significantly deter advisors and companies seeking to misuse the benefits available under the R&D Tax Incentive.

This case serves as another reminder for companies and their tax agents to:

• Procure R&D Tax Advisory services from a reputable advisor;
• Ensure the advisor is fully transparent in respect of:

o    The basis for R&D expenditure calculations;

o    Working papers and details of key positions, such as any apportionment methods where relevant;

o    The relevant guidance published by AusIndustry and ATO that was applied as a basis for the claim.

Swanson Reed supports any measures that maintain the integrity of the R&D Tax Incentive and the profession.

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.