Last decade, there were a number of R&D Tax Disputes heard by the courts with the majority of decisions seeming to find in favour of the regulators that claims (most of which were large) were not eligible. The original Federal Court decision in 2019 regarding Moreton Resources Ltd and Industry Innovation and Science Australia was big news at the time, since it represented one of the few matters where a decision was ruled even partially in favour of a taxpayer. […]
The previous Coalition Federal Government had first announced that it planned to introduce a patent box tax incentive for eligible income associated with new patents in the medical and biotechnology sectors in the May 2021 federal budget. The legislation to enact this was introduced to the lower house in February 2022 (with a proposed start date of July 2022), but was not passed as law before the federal election. There is now a new Labor Government following the federal election and in […]
A recent AAT decision handed down in November 2022 (Active Sports Management Pty Ltd and Industry Innovation and Science Australia) has allowed a company seeking review of an AusIndustry decision to be reinstated, on the grounds that the review was dismissed in error. The AAT found that while the company did not comply with certain directions from the Tribunal, they had made an effort in obtaining expert evidence and preparing submissions in support of its case. We understand that this […]
A new AAT decision handed down in October 2022 (T.D.S BIZ PTY LTD and Commissioner of Taxation) considered the case of an R&D Entity attempting to claim the cost of overseas moulds, fabrication, CAD and assembly within their R&D Tax Incentive claim without having first attained an Overseas Finding from AusIndustry. This is one of the only administrative decisions to consider the specific issue of: Is R&D expenditure related to the cost of components for conducting R&D activity in Australia; […]