XPED Limited had previously announced to the ASX in July 2019 that the company had received notice from AusIndustry of a finding assessing registered activities as ineligible under the requirements of the R&D Tax Incentive for the 2017/18 period, totalling approximately $1.6M.
The activities in dispute were in respect of development of Internet of Things based software and hardware solutions.
The July ASX Announcement included a statement that XPED Limited was committed to appealing the finding.
XPED Limited have since announced to the ASX on 27 December 2019 that:
This situation highlights the scrutiny that is currently placed on software R&D Claims, and the care that must be taken when registering software development activities under the R&D Tax Incentive.
AusIndustry released updated guidance on the eligibility of software development activities in February 2019 which claimants should ensure they review.