Swanson Reed News

Tier Toys Limited v Commissioner of Taxation [2014] AATA 156

March 26th, 2014

The AAT has upheld the Commissioner’s decision to reduce a taxpayer’s claim for the research and development (R&D) tax offset because the latter could not prove that the disputed expenditure was incurred. Facts The taxpayer was incorporated in 2006. It registered its R&D project for the 2006/07 income tax year with AusIndustry. The R&D activities involved manufacturing a children’s multi-layered “stacker” toy using an experimental and novel injection moulding process. The taxpayer claimed expenditure that included fees for personal services […]

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ATO ruling on software development

March 20th, 2014

On 12 March 2014, the ATO issued Taxation Ruling TR 2014/1 titled “Income tax: commercial software licensing and hosted agreements: derivation of income from agreements for the right to use proprietary software and the provision of related services”. This ruling deals with when commercial software developers derive income for the purpose of s 6-5 of the Income Tax Assessment Act (ITAA) 1997 from: (i) licence agreements for proprietary software; and (ii) hosted or cloud arrangements for use of proprietary software. […]

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Large firms to be denied R&D tax incentives

March 18th, 2014

This afternoon, the Senate Economics Legislation Committee (“the Committee”) tabled their report into the Tax Laws Amendment (Research and Development) Bill 2013 (“the Bill”). As it stands, the Bill proposes that companies with an aggregated assessable income of $20 billion or more are to be denied access the R&D Tax Incentives. The Bill is expected to save approximately $1 billion annually and apply to income years commencing on or after 1 July 2013. The Committee recommended that the Bill be […]

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Lodgement Timing Differences

March 16th, 2014

The Industry Research and Development Act 1986 requires all applications for registration to be received by the IR&D Board within 10 months of the end of your company’s financial year end. For example, a December year-end company must lodge its application by 31 October of the following year. A June year-end company must lodge its application by 30 April of the following year. The ATO tax return lodgement date for large and new companies is considerably less than 10 months and for smaller existing companies is greater […]

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Bryce Steele
Principal, Melbourne
Tel: (03) 9018 5778
Mob: 0435 713 493
Tom Parkhouse
Principal, Sydney
Tel: (02) 8006 0559
Mob: 0435 713 493
Andy Nguyen
Principal, Brisbane
Tel: (07) 3221 1499
Mob: 0407 750 249
Kieu McKellar
Manager, Adelaide
Tel: (08) 8121 7850
Mob: 0435 713 493
David Greatwich
Principal, Perth
Tel: (08) 9340 3745
Mob: 0468 386 250
Krishna Gungaram
Manager, Hobart
Tel: (03) 9018 5778
Mob: 0435 713 493



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