With many companies preparing to make research and development tax incentive (R&DTI) claims, now's a great time to ensure you're across the areas of concern we're focussing on this tax time. That way, you can ensure your clients' R&DTI claims are airtight and won't result in amendments and repayments down the track.
Areas to focus on
Ensure you:
- advise and educate your clients on program eligibility requirements
- rigorously examine accounting data to ensure only eligible R&D deductions are claimed
- advise clients to identify and document a distinction between business-as-usual activities and R&D expenses
- let clients know that receiving a receipt for registering R&D activities with Department of Industry, Science and Research (DISR) doesn’t mean these activities are approved
- check deductions aren't being claimed for payments to associates that are incurred but not paid.
Both the ATO and DISR review and verify claim information to ensure it's correct. This includes checking information against other sources.
For more information on areas of concern, visit Helping you get R&D claims right.
Report dodgy advice
We value your role in supporting clients. But as we edge closer to tax time, we're concerned about tax professionals and others providing tax advice who aren't licensed, whose practices put both their clients and the integrity of the R&DTI at risk. Aggressive sales tactics remain on our radar, and we're asking for your help to stamp out this kind of behaviour.
If you hear about poor or misleading R&DTI advice being promoted, we encourage you to come forward and make an anonymous tip-off. Your information helps us take action and safeguard the integrity of the system for everyone. We work closely with the Tax Practitioners Board to bring serious consequences to tax agents who mislead their clients.