R&D Tax Claim “Health Check”

The R&D Tax Incentive is a self-assessment program. The obvious advantage of this is that information submitted to the Regulators will be taken as being ‘’true and correct’’ at first instance. 

R&D Tax Claim “Health Check”

It’s all about ‘’compliance’’

The R&D Tax Incentive is a self-assessment program. The obvious advantage of this is that information submitted to the Regulators will be taken as being ‘’true and correct’’ at first instance.  In the event of any subsequent review, however, the onus will be on the applicant to provide evidence that can substantiate the claim. This substantiation may be in respect of either the technical documentation that evidences that an ‘’experiment’’ has been conducted or project financial documentation that establishes the connection between the R&D expense claimed and the R&D activities registered.

While the requirement for evidence-based substantiation of claims has been part and parcel of the R&D tax program for ever and a day, the Regulators seem to be currently taking a particularly hard-line approach. In cases where applicants are unable to adequately substantiate their claims, interest and even penalties may be applied if the ATO decides all reasonable care has not been taken.

The stakes can be high but this is another area where NOAH can assist. With our R&D Tax Claim ‘’Health Check’’, we can run the ruler over your claim and quickly assess:

1. The strength of the technical arguments for eligibility of core and supporting activities

2. The robustness of your R&D costing methodology as compared to ATO Guidelines about the amounts you can claim and

3. The extent to which your technical and project financial supporting documentation will substantiate that ‘’experimental’’ activities have been conducted and the costs claimed are connected to the R&D activities registered.

What’s more, our ‘’Health Check’’ report will provide clear direction as to what can be done to address any areas that are identified as falling short of substantiation requirements.  As they say in the classics, to be forewarned is to be forearmed!