During a presentation to the Council of Small Business Organisations of Australia National Small Business Summit, tax commissioner Chris Jordan has commented that there is a structural problem with the operation of the R&D Tax Incentive, particularly surrounding the self assessment regime whereby the ATO may undertake reviews following a previous registration of R&D Activities and receipt of funds.
In comments published by the Sydney Morning Herald, Chris Jordan was critical of the R&D “industry” that has emerged in professional services firms, and indicated that R&D is one of the most difficult and most emotional areas of compliance undertaken by the ATO.
The tax commissioner’s comments have been made following The Australian Small Business and Family Enterprise Ombudsman’s announcement that they will deliver the findings of an investigation into the processes for compliance reviews of companies registering activities under the R&D Tax Incentive.
In response to the concern’s highlighted by the tax commissioner, Swanson Reed notes:
Swanson Reed supports the efforts of the ATO and AusIndustry to uphold the integrity of the R&D Tax Incentive, and encourages all participants of the programme to review the R&D Tax Incentive guidance material published by these agencies.