The ATO recently issued warnings for companies in the Software, Construction and Agriculture industries regarding eligible research and software development activities.
The R&D Tax Incentive allows Australian companies conducting innovation and research & development activities a tax offset with the goal of encouraging innovation in Australia.
The warning issued states that there are some companies claiming the incentive for activities which do not meet the specified criteria.
The overarching criteria is that the expenses eligible to be claimed back through the R&D incentive must be incurred through work that is solving a technical unknown based on a hypothesis.
For software claims especially it is important to be registering activities with technical uncertainties, rather than commercial or operational uncertainties. For more information about when software claims are classed as R&D for tax purposes you can read our blog post here
If you’re concerned about the expenses you have already claimed or will be claiming for FY17, email us to have your claim reviewed by a PwC R&D Specialist.
This service is available to existing and new Nifty customers. Fees available POA.