Home » News » NaughtsnCrosses Pty Ltd v Innovation Australia [2012] AATA 743

NaughtsnCrosses Pty Ltd v Innovation Australia [2012] AATA 743

April 8th, 2014

NaughtsnCrosses sought a review by the Administrative Appeals Tribunal (AAT) of a decision made by the IR&D Board and affirmed on internal review by the commissioner of taxation, which deemed activities claimed as R&D by NaughtsnCross as ineligible for the R&D tax incentive.

Background

  • NaughtsnCrosses (called Absoft at the time of the events in the proceedings), claimed that it satisfied the criteria which entitled them to claim the R&D tax concessions for expenditure in the 2002/03 and 2003/04 income years for their “Spyderman Project”.

  • The project involved embedding heat resistant radio frequency identification (RFID) tags into moulds, installing RFID readers to read the tags and collecting information about the moulds in the course of a manufacturing process.

  • The applicant lodged an application for registration of its R&D activities in connection with the Spyderman Project in February 2004, and was lodged in March 2005. In January 2006, the Commissioner of Taxation requested the IR&D Board assess whether NaughtsnCrosses activities qualified as R&D activities within the definition in s 73B(1) of the Income Tax Assessment (ITA) Act.

  • Innovation Australia, in conjunction with the Commissioner of Taxation, determined that the activities claimed in connection with the Spyderman Project did not satisfy the statutory criteria.

Decision

The AAT affirmed the IR&D Board’s decision under review not to entitle NaughtsnCrosses to claim the tax concession. Deputy President Hack stated that “the evidence of experimentation and testing is vague and imprecise” and found that the activities under review did not meet the specified guidelines of systematic, investigative and experimental.

 Click here to view the NaughtsnCrosses Pty Ltd v Innovation Australia [2012] case.

Are You Eligible?


Click here for the R&D Eligibility Wizard

R&D Audit Checklist


Click here for the R&D Eligibility Wizard

Categories

Archives

 
  
 Swanson Reed - Specialist R&D Tax Advisors 
 
 
 Swanson Reed - Specialist R&D Tax Advisors
  
 39 Google reviews 
 
  
 
 
 
 
  
 Swanson Reed - Specialist R&D Tax Advisors 
 
 
 Swanson Reed - Specialist R&D Tax Advisors
  
 39 Google reviews 
 
 
 
 
 
  
 
 
 
 Daniel McGregor 
 
 
 Daniel McGregor 
 
2022-08-11
 
 
  
 
I have been using Swanson Reed for my clients for more than a decade.  Having a specialist firm that can provide practical and commercial advice that produces real outcomes is very important and we have received great feedback from our clients.
Highly recommended.
  
 
 
  
 
 
 
 John 
 
 
 John 
 
2022-06-15
 
 
  
 
Damian and the rest of the team at Swanson Reed have been supporting us for several years.  We always appreciate their insights, expertise, and efforts.
  
 
 
  
 
 
 
 Rueben Rajasingam 
 
 
 Rueben Rajasingam 
 
2022-06-06
 
 
  
 
Experienced responsive Team. They have been a great help to me and my company navigate the R&D tax claim process and have provided invaluable advice.
  
 
 
  
 
 
 
 Enrique Esquivel 
 
 
 Enrique Esquivel 
 
2022-06-06
 
 
  
 
Damian and the team at Swanson Reed have been extremely helpfully and professional during all of our consultations. Highly recommended.
  
 
 
  
 
 
 
 Jess at Y&C 
 
 
 Jess at Y&C 
 
2022-06-03
 
 
  
 
  
 
 
  
 
 
 
 Anatole Kononewsky 
 
 
 Anatole Kononewsky 
 
2022-06-02
 
 
  
 
The Swanson Reed team have provided our company with exceptional professional advice and assistance for all of our R&D claims for many years - have always achieved great results with excellent value for their services.
  
 
 
  
 
 
 
 Payam Toloo 
 
 
 Payam Toloo 
 
2022-06-02
 
 
  
 
Damian Smyth and his team are very helpful, supportive and experts in their field of R&D Tax claims. I'm always happy with the work they do and been a customer of their for over 5 years.
  
 
 
  
 
 
 
 Melissa Doddy 
 
 
 Melissa Doddy 
 
2022-05-31
 
 
  
 
The Team at Swanson Reed are very experienced R&D Tax Advisors and gave us ongoing support with all of our R&D Claims, the consultants ensured we were always working with current legislative guidelines, gave us assistance with compiling technical and government documentation and went out their way to ensure they were with us for the entire process from beginning to end.  Highly recommended to anyone who needs assistance with working through what can at times be a daunting process.
  
 
 
  
 
 
 
 Gary Watson 
 
 
 Gary Watson 
 
2022-05-31
 
 
  
 
We can highly recommend Swanson and Reed as an R & D accountant. We have worked with them for several years now as they make our R & D claim so easy and communicate quickly with both us and our accountant.
  
 
 
  
 
 
 
 Rob van den Bergh 
 
 
 Rob van den Bergh 
 
2022-05-31
 
 
  
 
Always professional.