Strike Energy 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.
Subsequent announcements to the ASX in following initial disclosure of the dispute indicated that:
The company’s FY21 Annual Report released in September 2021 indicates that:
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 couple of years.
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.