As previously reported, Real Energy Ltd was involved in a dispute with R&D Tax Incentive programme regulators over the eligibility of its R&D activities spanning a number of years.
Corporate activity between Real Energy and Strata-X has since merged to form Pure Hydrogen Corporation Ltd.
Pure Hydrogen Corporation on the 23rd of June provided the following update on the dispute:
The above is a good outcome for Pure Hydrogen Corporation, considering that when companies’ activities reach the stage of a negative finding and AAT dispute, compliance proceedings can be difficult to settle or overturn.
The settlement also follows positive (or partially positive) R&D tax dispute settlements reached by Argent Minerals (ASX: ARD), Strike Energy (ASX:STX) and Northern Minerals (ASX: NTU) over the past couple of years.
Whilst this is a good outcome, resolving matters through AAT and the courts is costly and resource intensive. 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.
Contact our office for more information regarding R&D tax compliance or for help with your R&D Tax Incentive application.