A recent case heard in the AAT has affirmed an internal review finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements.
The case: Havilah Resources Ltd and Innovation and Science Australia (Taxation)  AATA 933 (16 April 2020) refers to R&D Activities claimed in the FY13 and FY14 periods.
The registered activities related to iron and gold deposits and were of an exploratory nature.
The disputed core activities were:
In December 2015, a formal post-registration finding was made under s 27J of the IR&D Act that aspects of Halivah’s R&D activities were neither core nor supporting, which was confirmed in an internal review in November 2016.
In December 2016, Havilah applied to the Administrative Appeals Tribunal for a review of the internal review decision under s 30E of the IR&D Act.
The AAT upheld the previous decision that the activities were not eligible.
None of the activities claimed by Havilah were considered core R&D activities, according to the definition in s 355-25(1).
Click here to view or download the case.