Throughout the Nifty Grants R&D claim process our guidance is intended to minimise the risk of a detailed investigation from the regulator. Despite our best efforts and strict internal processes, it is possible that the receipt of your R&D refund could be held up or reviewed through a formal review process and this is becoming more common.
Types of reviews from the regulatory bodies
There are two regulatory bodies who engage in reviews and audits of R&D Tax Incentive claims, these are:
- The Australian Taxation Office (ATO) - who usually focus on the eligibility of expenditure
- AusIndustry - who generally focus on the eligibility of the project/activities
What’s required for a review?
- Documentation proving that the R&D activities, expenditures and time that has been spent on the R&D claimed will be key to a satisfactory response.
- Heeding feedback and guidance provided to you throughout the Nifty review process will help you to mitigate your risk.
What does a review or audit process look like?
The review/audit process of each regulator is different and can be triggered for any number of reasons
If the regulator chooses to review your claim and finds areas where they require further information, then the process will generally start with a letter outlining questions to be answered, which may be followed by a meeting.
The line of questioning is difficult to predict, as is the amount of time required to prepare responses. Over recent months, the regulators have scrutinised claims more closely to reduce fraud and to try and limit claims in certain industries. As such, although we will assist you to meet all current guidance, PwC’s Nifty Grants cannot guarantee the outcome of an audit or review by the ATO or AusIndustry and we do not include audit assistance as part of the Nifty Grants service fee.
What if you receive an audit or review request?
If you receive a review from AusIndustry or the ATO, as part of your Nifty Grants service we will provide one free R&D Assist call to go through the review questions and ensure you are well placed to respond. If you require more detailed assistance or for PwC to prepare the response on your behalf, we can quote for that work at the time.
Need more information?
Leave us a message, with complete detail of your question, in the Ask for help box in bottom right of your screen and we'll be in touch.