• Substituted accounting periods

    Under the Income Tax Assessment Act 1936 (ITAA 1936), an accounting period is generally a period of 12 months ending on 30 June. However, the Act allows for a substituted accounting period (SAP) to balance on some other date.

    Can I claim the R&D tax incentive in my 2011 tax return if my 2011 income year begins before 1 July 2011 but ends after 1 July 2011?

    No, the start date for the R&D tax incentive is determined by when your income year begins, not when it ends. If your 2011 income year begins before 1 July 2011, you cannot claim the R&D tax incentive until your first year of income beginning on or after 1 July 2011.

    Example:

    Company A has a late-balancing September SAP. Company A's 2011 tax return will be lodged for the period 1 October 2010 to 30 September 2011. As its 2011 income year begins on 1 October 2010, which is before 1 July 2011, it will not be able to claim the R&D tax incentive until its 2012 income year, beginning on 1 October 2011.

    Can I claim the R&D tax incentive in my 2012 tax return if my 2012 income year begins before 1 July 2011?

    No, if your 2012 income year begins before 1 July 2011, you will not be able to claim the R&D tax incentive until your first income year beginning on or after 1 July 2011.

    Example:

    Company B has an early-balancing December SAP. Company B's 2012 tax return will be lodged for the period 1 January 2011 to 31 December 2011. As its 2012 income year begins on 1 January 2011, which is before 1 July 2011, it will not be able to claim the R&D tax incentive until its 2013 income year, beginning on 1 January 2012.

    I have an early-balancing December SAP with an income year from 1 January 2011 to 31 December 2011. Can I claim the R&D tax concession from 1 January 2011 to 30 June 2011 and the R&D tax incentive from 1 July 2011 to 31 December 2011?

    No, the R&D tax incentive applies to income years beginning on or after 1 July 2011. You cannot claim the R&D tax incentive for an income year beginning before this date. If eligible, you will be able to claim the R&D tax concession for your 2012 income year and claim the R&D tax incentive for your 2013 income year.

    I'm unable to claim the R&D tax incentive in my 2012 tax return as my 2012 income year begins before 1 July 2011. How do I claim the R&D tax concession for the 2012 income year?

    Early balancers are unable to lodge their 2012 R&D tax concession claim electronically. You must instead lodge paper versions of both the Research and development tax concession schedule 2011 and Company tax return 2011, clearly marking them '2012' by crossing out 2011 at the top of these forms and writing 2012. Once your schedule and tax return is received by us, a manual workaround will be undertaken by us to ensure that your claim is processed correctly.

     

    Attention

    Ensure that you use paper versions of the Research and development tax concession schedule 2011 and Company tax return 2011. There may be delays in processing your tax return if you do not use these forms.

    End of attention
      Last modified: 31 Aug 2012QC 25268