It’s that time of year again! With the End of Financial Year rapidly approaching, there are several things to consider when claiming the Research & Development (R&D) tax incentive.
If you plan to engage contractors to provide R&D services that will be completed in the next 12 months, ensure that you have received the invoice or signed contract prior to 30 June.
Recording this as an accounts payable or accrued expense before the end of the financial year allows you to legitimately claim the expense for this financial year.
Payments to associates need to be made by 30 June.
Associates may include shareholders of the company, company directors, and related legal entities such as Trusts. If amounts incurred to associates are not paid prior to 30 June they can be either:
Prime’s R&D specialists are here to advise you regarding the application of the associate rules to your specific circumstances, however we need to act quickly.
We understand that AusIndustry and ATO review activity will continue to increase over the next 12 months.
The End of the Financial Year is an important time for companies to ensure they have the necessary documentation to support their R&D Tax Incentive claims.
If claims are reviewed, companies must substantiate to AusIndustry and/or the ATO that:
Key focus areas are likely to include the following:
Additional information on R&D Tax Incentive documentation requirements is available here:
AUSINDUSTRY GUIDANCE – CLICK HERE ATO GUIDANCE – CLICK HERE
To discuss further on how we can best assist you, please contact:
Brisbane:
John Driscoll – johnd@primefinancial.com.au
Melbourne:
Brendan Brown – brendanb@primefinancial.com.au
Simone Quin – simoneq@primefinancial.com.au