XPED Limited Announce Successful Appeal Of AusIndustry Finding For Disputed Software Activities

January 8th, 2020 Software solutions

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:

  • XPED successfully appealed the finding and has now received a new Certificate of Findings confirming that a majority of activities were eligible. As such, XPED will no longer be required to repay the majority (if any) of the R&D Tax Incentive received in relation to the 2017/18 year.

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.

Source: AusIndustry

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