R&D Tax Compliance Health Check

• Are you certain that you understand the intricacies of the program?
• Are you approaching your R&D activities using the scientific method?
• What are eligible core and supporting activities?
• When do eligible R&D activities start and finish?
• How does the dominant purpose test affect your claim?
• What records do you need to keep?

“It’s fine. My accountant does it for a few of his clients and I’m happy with the outcome”.

While all accountants are definitely not the same, the ATO reports the highest error rates for R&D claims are made by accountants that lodge less than five claims a year.

The carrot and the stick. With a 43.5% tax offset at stake, claimants need to be sure they don’t get it wrong and have to repay the benefits plus penalty interest.

Undertaking an R&D Tax Compliance Health Check is a great way to sort things out and get some peace of mind as you need to know whether your claims are defensible.

After a site tour or presentation about the opportunities and challenges facing your business, we address the key issues facing firms claiming the R&D Tax Incentive.

Quite simply these cover:

1. Am I claiming eligible R&D activities?
2. Am I claiming eligible R&D expenditure?
3. What records link  eligible R&D activities to the expenditures claimed?
4. Does my approach to R&D follow the scientific method?
5. What is involved in preparing an R&D claim?
6. What records will the ATO or AusIndustry require if I am picked up for an audit?

This is combined with a review of your last claim, your record keeping system and the results you have achieved to date. Tax compliance health check participants expand their understanding of the activities which can be claimed and how to capture them on an ongoing basis to bolster their compliance.

So we have created templates to help you get up to speed quickly and satisfy the scheme’s compliance requirements. These include R&D Project Plan templates for software and engineered products, information sheets on important aspects of claiming the Tax Incentive, and intuitive weekly labour tracking spreadsheets.