Research and Development (R & D) Tax Incentive
What is the R & D Tax Incentive?
The Research and Development (R&D) Tax Incentive is a refundable tax offset for Australian businesses engaging in eligible R&D activities.
The R&D Tax Incentive replaced the R&D tax concession from 1 July 2011.
Which entities are eligible?
Eligible businesses must have an aggregated turnover of less than $20 million per annum and not be controlled by an income tax exempt entity to be eligible for the 43.5% refundable tax offset.
Audits and reviews of Taxpayers
The ATO and the Department of Industry, Innovation and Science (on behalf of Innovation and Science Australia) jointly administer the R&D Tax Incentive.
The R&D activities must be registered with the Department of Industry, Innovation and Science before the tax offset is claimed.
The ATO does conduct reviews and audits to determine if the expenditure claimed by entities in their tax returns for their R&D activities is eligible for the tax offset.
The ATO may consider the following kinds of issues when reviewing a R & D claim: