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 an R&D 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.