Home » News » Strike Energy (ASX:STX) Announces R&D Tax Dispute Settlement and Pursuit of Subsequent Claims

Strike Energy (ASX:STX) Announces R&D Tax Dispute Settlement and Pursuit of Subsequent Claims

Strike Energy had previously disclosed R&D Tax Offsets in dispute with Innovation & Science Australia (ISA) in respect of the FY16 period of $6,333,638, which also had subsequent implications on R&D Tax Offsets in the FY17 period of $3,697,000.

Announcements to the ASX in recent months indicated that:

• The matter was currently before the Administrative Appeals Tribunal (AAT);
• The company was confident in their position and the eligibility of their claims;

Strike Energy has since announced to the ASX on 27 August 2020 that:

• A positive settlement with ISA has been reached in respect of the claims under review;
• As a result of the settlement reached, the company will proceed with a claim for the FY18, FY19 and FY20 periods;

The above is a good outcome for Strike Energy, 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) and Northern Minerals (ASX: NTU) over the past 12 months.

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.