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Edited version of your written advice
Authorisation Number: 1051341044763
Date of advice: 23 February 2018
Ruling
Subject: Early stage innovation company
Question 1
Does Company A meet the criteria of an Early Stage Innovation Company (ESIC) under subsection 360-40(1) of the Income Tax Assessment Act 1997?
Answer
Yes
This ruling applies for the following period:
Year ending 30 June 2017
The scheme commences on:
XX XX 2016
Relevant facts and circumstances
1. Company A was incorporated in Australia on Date X. Its equity interests are not listed for quotation in the official list of any stock exchange.
2. Company A has no subsidiaries and in the previous income year, i.e. the year ending 30 June 2016 they had incurred expenses of less than $1 million and total assessable income of $200,000 or less.
3. Company A is developing a product and information that details its development was provided.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 360-A
Income Tax Assessment Act 1997 Section 360-40
Income Tax Assessment Act 1997 Section 360-45
Reasons for decision
1. Company A was incorporated in Australia on Date X. Its equity interests are not listed for quotation in the official list of any stock exchange.
2. Company A has no subsidiaries and in the previous income year, i.e. the year ending 30 June 2016 they had incurred expenses of less than $1 million and total assessable income of $200,000 or less.
3. Company A is developing a product and information that details its development was provided.
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