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Large ASX listed Agribusiness provides update on R&D Tax Dispute

In its interim financial report released in February 2026, Inghams Group Limited (ASX: ING) provided an update on an R&D Tax matter. This matter was previously reported in the media last year.

The February 2026 ASX release notes:

• Inghams has been undergoing an audit by the Australian Taxation Office (‘ATO’). The ATO has asserted that Inghams’ R&D tax offset claims require adjustment under the Income Tax Assessment Act 1997 for each of the income years 2019, 2020 and 2021 (the adjustment is approximately equal to the offset claimed of S8.5m in each year). The R&D expenditure claim would remain subject to the normal tax deductibility rules already applied. R&D claims for income years 2022, 2023, 2024 and 2025 have not yet been submitted in Inghams’ tax returns as there are further substantive steps including registrations and certifications required to complete the scope and measurement process. These matters are unrelated to the ATO position with respect to the 2019, 2020 and 2021 tax returns.
• The accounting position involves significant judgement in the interpretation and application of the R&D offset provisions in the income tax laws and estimation uncertainty, however, is supported by advice obtained from the Company’s tax advisors. Inghams intends to vigorously defend its position and contest the matter through litigation proceedings, if required.
• Based on information available, there is no change to the Company’s position from 28 June 2025. Inghams has also concluded that it is not probable the Company’s income tax expense will be adjusted in relation to this matter and no uncertain tax provision was recognised as at 27 December 2025.

Swanson Reed has no knowledge of this matter other than what has been announced in the company’s ASX filings and the media.

This is a reminder that R&D Claims must be compiled and assessed with care, and that claimants should carefully adhere to R&D Tax Compliance guidance published by AusIndustry and the ATO.

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.