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Northern Minerals Announce That AusIndustry Have Set Aside Previous Finding That R&D Activities Were Not Eligible

In May 2019, Northern Minerals (ASX: NTU) announced that the company had received notice of a finding that AusIndustry had deemed that the activities registered in the FY17 and FY18 periods related to activities that were “ineligible R&D activities”, which would not be eligible for the R&D tax offset in those income years.

In June 2019, Northern Minerals subsequently announced that the company would exercise its review rights in relation to AusIndustry’s decision that the Company’s FY17 and FY18 R&D Claims related to activities that were “ineligible R&D Activities”, and would file a request for internal review of the decision with AusIndustry.

Northern Minerals has today announced to the ASX that in February 2020, the company received formal notification that AusIndustry has reversed its initial finding in relation to the Company’s R&D Claims and that:

• The result of the internal review is that most of Northern Minerals’ registered activities are in fact eligible for the R&D incentive;
• Northern Minerals has agreed to exclude from the claim some minor supporting activities that were part of the previous claims.

These matters are reminders that R&D Claims must be compiled and assessed with care, and that claimants should consider guidance material published by AusIndustry and the ATO on R&D Tax Compliance.

Source: ASX