A surprising announcement was made by The Government in the FY25 MYEFO released in late December 2024, which took the unprecedented step of announcing an eligibility restriction to be applied to specific sectors. The MYEFO budget papers noted: The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for income years starting on or after 1 July 2025. Research and development activities related to gambling can exacerbate addiction and associated harms, while activities related […]
A federal court case with judgement dated 16 December 2024 (with The Commissioner of Taxation as the Applicant and a number of parties as Respondents) has declared that respondents were promoters of tax exploitation schemes to secure R&D tax offsets pursuant to Division 355 of the Income Tax Assessment Act 1997 (Cth) for a number of companies. Very large penalties have been levied in the case and the liquidations of two entities listed as respondents were noted in the judgement as being on hold pending the outcome of […]
Companies seeking to register R&D Activities conducted during the Year Ended 31 December 2023 (companies that have a December Year End for tax) who are yet to do so should note that the Registration Deadline is the end of October 2024. The extensions granted during COVID no longer apply, and the statutory deadlines revert to normal (10 months after the end of a company’s financial year). There are mechanisms available under the IR&D Act and IRD Decision making provisions that allow for […]
This time of year (shortly after financial year end) companies can often be eager to receive their R&D Registration notices to facilitate lodgement of R&D Claims within their company tax returns. This is particularly so for SME tax loss companies who may be seeking to receive Refundable R&D Tax Offsets within their tax returns. In a recent update, AusIndustry has commented on factors which impact registration processing times. The update noted: There are several factors which may impact the time it […]