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.