Within its recent FY20 Annual Report posted to the ASX, Real Energy Corporation Limited (ASX: RLE) has provided an update on the status of the company’s dispute with AusIndustry/ISA over the eligibility of its R&D Activities.
The company had previously received an adverse finding for R&D Tax Registrations during the FY14, FY15 and FY16 periods, with corresponding tax offsets in dispute totalling around $7.2M. Further potential unpaid R&D Tax offsets of around $6.5M are at stake for the FY17 to FY19 periods.
RLE has appealed the adverse findings to the Administrative Appeals Tribunal (AAT) as was previously reported to the market;
The company’s Annual Report noted the following status of the matter:
It is worth noting that other companies with previous disputes on R&D Activities, have reported favourable, or partially favourable settlement outcomes over the past 12 months. These companies include:
The above is a reminder that R&D Claims are subject to regulator scrutiny, and that companies should consider guidance material published by AusIndustry and the ATO on R&D Tax Compliance when assessing claims.