Client alert

How well have you considered the R&D integrity rules when preparing your R&D Tax claim?

By:

Rebecca Iwanuscha

09 Nov 20232 min read

In line with focussing on tax transparency, good governance and paying your fair share, the ATO is concentrated on ensuring the integrity of the R&D Tax Incentive (RDTI) program.

This is not surprising given the important role the RDTI plays in fostering Australian-based innovation, research and development. To assist, the ATO has released further clarification and guidance on R&D Tax integrity rules. Attention is given to recurring issues the regulators have identified with RDTI claims including:

Associate expenditure
Contract R&D arrangements,
Aggregated turnover
Overseas expenditure
Expenditure not at risk.

The ATO also announced it will begin publishing an annual transparency report on the RDTI program starting from September 2024. This will include the name of R&D entity, the R&D expenditure claimed (total notional deductions) and ABN/CAN. The first publication will apply to R&D claims made for the year ended 30 June 2022. For more detailed information, you can visit the ATO’s website.

Get in touch with Grant Thornton’s team of R&D Tax specialists to understand the integrity provisions or how these changes may impact your business.

Learn more about how our Research and Development (R&D) Tax Incentive services can help you

Visit our Research and Development (R&D) Tax Incentive page